Nimble Storage Inc (NMBL) jumps over 50% after IPO

Posted Dec 13, 2013

Nimble Storage Inc (NYSE:NMBL) went public today and has gained over 55% in trading so far. The company priced their IPO at $21 and it opened at $31.10.  It is now trading at $33.43 at the time that this article was written. Nimble Storage charged institutional investors that bought IPO shares a higher price after originally seeking a range of $16 to $18. The price was increased to $18 to $20 before jumping $1 higher at the last minute.

“This the beginning of the next stage of the journey for us,” stated Nimble CEO Suresh Vasudevan. “There’s a long road ahead and it will be another fun journey as we look ahead.”

Nimble Storage Inc (NYSE:NMBL) sold 8 million shares and raised $168 million at a valuation that is slightly lower than $1.5 billion. As of the trading shares for today, the company now has a valuation of over $2.3 billion.

Nimble Storage Inc (NYSE:NMBL) was founded six years ago in San Jose, California. The company started shipping enterprise products in 2010. Nimble even added 1,300 customers in the past year. Total revenues increased 700% and 280% in the last two fiscal years. Revenues are expected to double this year. Profits are not positive though. During the first three quarters of 2013, the company showed a loss of $30 million on revenues of $84 million. Nimble Storage Inc (NYSE:NMBL) uses a hybrid storage system that uses flash memory and hard disks.

Prior to going public, Nimble Storage Inc (NYSE:NMBL) raised almost $100 million in venture capital funding. Investors include Sequoia Capital and Accel Partners. Each of these companies will own 18.4% of the company after the IPO. Lightspeed Venture Partners will own 13.9%. None of these companies sold shares during the IPO. The underwriting banks in this deal was Goldman Sachs and Morgan Stanley. Both of these banks have access to an additional 1.2 million shares, according to Mercury News.