Gigamon shares (GIMO) roared in the company’s New York Stock Exchange debut on Wednesday, rising almost 50 percent from its $19 IPO price. Shares traded as high as $28.81 in after hours trading.
Gigamon is in the business of facilitating network efficiency and cost-savings for medium and large sized businesses. Its Traffic Visibility technology allows clients to control traffic across networks, improve return on investment, and efficiently manage and secure networks.
In other words, Gigamon’s flashy orange and blue data centers manage data traffic by filtering out unnecessary information, making business easier and more efficient for its customers.
The company raised about $85.5 million from the IPO, which the company will use to further expand and develop its product line.
The company has an outstanding customer base including 60 percent of the Fortune 100 and several government agencies. With over 1,000 clients, Gigamon has been profitable for the last several years and grew revenue by 55 percent in its most recent quarter. With strong financials and only 4.5 million shares sold to the public, investors were willing to pay a huge premium to the IPO price.
Gigamon was the latest tech IPO to explode on its debut. Last Friday, Textura shares rose as much as 68 percent in its first day in a similarly structured deal.
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