(Bloomberg) -- Switch Inc. jumped by almost half in its trading debut after raising $531 million in an initial public offering, the third-biggest technology IPO this year in the U.S.
Shares climbed 33 percent to $22.57 at 11:28 a.m. in New York Friday, giving the company a market value of more than $5.4 billion. The shares rose as much as 46 percent. The Las Vegas-based data center company sold 31.25 million shares for $17 each Thursday after marketing them for $14 to $16 apiece.
Only Snap Inc.'s $3.9 billion IPO and Altice USA Inc.'s $2.2 billion offering topped Switch's deal this year in the U.S., according to data compiled by Bloomberg. The next-biggest was WideOpenWest Inc.'s $356.5 million listing.
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Switch designs, constructs and operates data centers and has been profitable for at least the past four years, it said in a regulatory 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. led the offering. Goldman Sachs and JPMorgan have an equal fee split while JPMorgan is the so-called syndicate trading manager, also known as the stabilization agent for early trades, a person with knowledge of the matter has said.
Switch listed on the New York Stock Exchange under the symbol SWCH.
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, Devin Banerjee
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