Gigamon Inc (GIMO) Stock Jumps Nearly 50% In IPO Debut

Posted Jun 13, 2013

Gigamon Inc (NYSE:GIMO) is a company that has developed a solution that delivers visibility and control of traffic across data networks.  Gigamon went public yesterday with an opening price of $23.63 (21% above the $19 IPO price).  The company’s stock closed at $28.47, up 49.84%.

This is the largest first-day opening for a U.S. based company since biotech company Epizyme according to Dealogic.  Gigamon raised over $80 million price the IPO after they priced the offering of 6.75 million shares at $19 each.  This was the midpoint of the expected range.  Gigamon sold 4.5 million shares in the IPO and the shareholders sold the rest.

Gigamon debuted on the NYSE shortly after Textura Corporation.  Textura’s stock price jumped as high as 68% since debuting on the NYSE last Friday.  Textura’s share price is now trading at about 40% above their IPO price of $15.

One of Gigamon’s largest investors is venture capital company Highland Capital Partners.  Highland sold 495,000 shares in the offering and will remain the largest shareholder with a 25.8% stake.  Goldman Sachs, BofA Merrill Lynch and Credit Suisse Securities were the leader underwriters in the IPO.

Gigamon works with 60 Fortune 100 companies and they earned $7.5 million on revenues of $96.7 million.  Gigamon has had positive cash flows in each of their last 7 years.