Switch jumps by almost half in its trading debut after raising $531 million in IPO

Listing is the third-biggest technology IPO this year in the US

Traders work on the floor of the New York Stock Exchange.

Traders work on the floor of the New York Stock Exchange.

 

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 US.

Shares climbed 33 percent to $22.57 at 11:28 am 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 centre 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 US, according to data compiled by Bloomberg.

Switch designs, constructs and operates data centres 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.

- Bloomberg