With 28.2m shares outstanding and 9.9m shares offered the firm raised around $97m in total. However, just under 3 million of the shares offered were from existing shareholders, leaving the company with proceeds of $48m.
However, the Havant, England-based firm did not exert as mesmerizing a spell on the market as Salesforce.com, which IPO’d earlier this week. Xyratex’ shares see-sawed around the offer price most of the day, before closing down five cents at $13.95.
Xyratex said it would use the proceeds of the offering for general corporate purposes. Some of the proceeds will be used to pay off debt. The company has a $17m loan with HSBC, according to its prospectus.
The storage sub system vendor was created through a management buy-out from IBM in the early 1990s. According to its prospectus, revenues for the year ended November 30, 2003 were $333.8m, with a net loss of $56.2m.
