Switch finishes up 22% in data center IPO

Fundings and Exits

Las Vegas-based data center operator Switch went public on the New York Stock Exchange today, under the ticker “SWCH.”

After pricing its IPO above the proposed range at $17, the company closed at $20.73, up almost 22 percent. The company raised $531 million in its offering.

Here’s how Switch describes itself in its filing: “We believe we are a pioneer in the design, construction and operation of some of the world’s most reliable, secure, resilient and sustainable data centers. Our advanced data centers are the center of our platform and provide power densities that exceed industry averages with efficient cooling, while being powered by 100% renewable energy.”

Switch has more than 800 customers and considers eBay its largest.

The company brought in $318 million in revenue last year, compared to $266 million the year before. Profits went down from $73 million in 2015 to $31 million in 2016. The first half of this year saw $35 million in profit, flat with the same period in 2016.

Intel Capital was the largest venture backer, which owned 5.3 percent prior to the IPO. Switch raised an undisclosed amount of funding since it was formed in 2000.

Goldman Sachs, J.P. Morgan, BMO Capital Markets and Wells Fargo Securities were the bankers underwriting the IPO. Latham & Watkins and Goodwin Procter served as counsel.

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