Switch Gets $531 Million in Third-Biggest U.S. Tech IPO of 2017

(Bloomberg) -- Switch Inc. raised $531 million in its initial public offering, making it the third-biggest technology IPO this year in the U.S.

The data center company sold 31.25 million shares for $17 each after marketing them for $14 to $16 apiece, Switch said in a statement. Only Snap Inc.'s $3.9 billion IPO and Altice USA Inc.'s $2.2 billion offering topped Switch's deal, according to data compiled by Bloomberg.

The next-biggest was WideOpenWest Inc.'s $356.5 million listing.

Switch designs, constructs and operates data centers and has been profitable for at least the past four years, according to the filing. The company posted 2016 net income of $31.4 million on revenue of $318.4 million. The previous year, it had net income of $73.5 million on revenue of $265.9 million.

Goldman Sachs Group Inc., JPMorgan Chase & Co., Bank of Montreal and Wells Fargo & Co. are leading the offering, according to a regulatory filing. Goldman Sachs and JPMorgan have an equal fee split while JPMorgan will be the so-called syndicate trading manager, also known as the stabilization agent for early trades, a person with knowledge of the matter has said.

Las Vegas-based Switch intends to list on the New York Stock Exchange under the symbol SWCH starting Friday.

To contact the reporter on this story: Alex Barinka in New York at abarinka2@bloomberg.net.

To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Michael Hytha, Elizabeth Wollman