Following yesterday's successful IPO debut from Splunk, today's two enterprise software IPOs both priced above their ranges.
Infoblox, which provides software-based appliances that automate network control for enterprises, raised $120 million on Thursday by offering 7.5 million shares (23% insider) at $16, above the original $12 to $14 range. The company will list on the NYSE under the symbol BLOX. Morgan Stanley, Goldman Sachs and UBS acted as joint bookrunners on the deal.
Infoblox's software provides automatic network control, which has become increasingly important as connected devices proliferate. It serves 5,400 customers, including Barclays, IBM and Johnson & Johnson, with a 90% renewal rate. Infoblox booked sales of $41 million in the most recent quarter, a 27% increase. Adjusted operating margin fell three points to 5% on higher R&D and G&A headcount.
Proofpoint, which provides on-demand data protection solutions to large and mid-sized enterprises, raised $82 million on Thursday by offering 6.3 million shares (19% insider) at $13, above the $10 to $12 range. The company will list on the NASDAQ under the symbol PFPT. Credit Suisse and Deutsche Bank Securities served as joint bookrunners on the deal.
Proofpoint helps companies protect and archive communications data, such as e-mails and instant messages. Bank of America and AON are among its largest customers. Proofpoint's sales increased 26% to $82 million in 2011, while net income remained negative, at -$20 million.
Splunk, priced its 13.5 million share IPO at $17, well above the revised $11-$13 range. The company had originally been seeking a price between $8 and $10, resulting in an offer price 89% above the midpoint of the original price range. Morgan Stanley, Credit Suisse, JPMorgan and BofA Merrill Lynch were the lead underwriters on the deal. The stock traded on the NASDAQ yesterday under the symbol SPLK, and marked a 109% first day return. Splunk had the biggest pop so far this year, topping last month's 92% first day gain by Millennial Media (MM).
Also debuting today is Midstates Petroleum, a First Reserve-backed oil and gas E&P with 92 producing wells in Louisiana. The company raised $312 million on Thursday by offering 24 million shares (25% insider) at $13, below the $16 to $18 range. Midstates Petroleum will list on the NYSE under the symbol MPO. Goldman Sachs, Morgan Stanley and Wells Fargo served as joint bookrunners on the deal.
Today's IPOs are all showing positive returns in morning trading. Infoblox is up 40% from its IPO price. Proofpoint is showing a 20% return. Midstates Petroleum is up 6% from its offer price. IPO returns have been strong so far this year. The FTSE Renaissance US IPO Index is up 16% year-to-date.
