Gigamon shares soar in first day of tradingJune 12, 2013 @ 8:42 am
(AP) - Gigamon shares soared more than 30 percent in the company's first day of trading.
THE SPARK: Gigamon, which makes equipment to monitor and control computer network traffic, went public Wednesday. It priced its shares at $19 per share, the midpoint of its expected range.
By late morning, its shares were up $7.09, or 37.3 percent, to $26.09.
THE BIG PICTURE: The IPO of 6.75 million shares raised about $128 million. The company sold 4.5 million shares in the offering, while shareholders sold the remaining.
The stock is trading on the New York Stock Exchange under the symbol "GIMO"
Gigamon, based in Milpitas, Calif., was founded in 2004. It had net income of $7.5 million on revenue of $96.7 million in 2012.
The company said in a regulatory filing that it plans to use the proceeds to make performance unit payments due to employees under a 2009 agreement, as well as for working capital and other general corporate purposes. Performance units are typically a form of deferred compensation that companies can use to encourage growth.
SHARE ACTION: Gigamon shares opened at $23.08 and rose as high as $26.42 in morning trading.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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