Nutanix IPO shatters expectations with 131 percent pop

SAN JOSE — Nutanix wowed the market on its first day of trading Friday, ending the day with shares trading at more than twice their initial public offering price.

Nutanix shares were trading at $37 when the market closed Friday afternoon — a pop of 131 percent. That price gives Nutanix a market cap of about $5 billion, welcome news for the company last valued at $2 billion as a private startup. At their peak Friday, Nutanix shares were trading at $39.40.

The first-day surge bodes well for future Bay Area tech IPOs. The cloud computing company raised $238 million Thursday evening, making its IPO the largest venture-backed offering of the year, according to Renaissance Capital, which manages IPO-focused exchange-traded funds. Nutanix priced 14.9 million shares at $16 — above the expected $13-$15 range the startup set the day before.

Nutanix is the third major Silicon Valley tech IPO of the year — and the third to price shares above the expected range. That’s a positive sign for a market that was virtually frozen earlier this year, with no IPOs for the first five months of 2016. Experts say Bay Area tech companies are starting to gain more confidence in the market as the number of IPOs slowly picks up, and those offerings show successful returns.

When San Francisco-based cloud communications startup Twilio broke the ice in June, its shares skyrocketed to nearly twice their IPO price on the first day of trading. Just over a month later, Redwood City-based data-software company Talend saw shares jump 42 percent in its public market debut.

As the market opened Friday morning, the Nutanix Twitter feed was full of pictures and video of company team members celebrating the IPO with champagne, confetti and plenty of cheering.

Confetti flies for @nutanix as the #NutantNation rings the ???? to celebrate #IPO! $NTNX @trailsfootmarks. ????

— Nasdaq (@NASDAQ) September 30, 2016

“Seven years ago, Nutanix set out to raise the bar for enterprise infrastructure by rethinking storage and compute for a virtualized world,” Nutanix co-founder, CEO and chairman Dheeraj Pandey wrote in an email statement. “Today’s listing marks an important milestone on our journey as we continue to revolutionize the next generation IT infrastructure and computing that will help our customers realize the full potential of the enterprise cloud.”

Nutanix is trading on the Nasdaq Global Select Market under the symbol NTNX.

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