Friday, March 10, 2017

Unicorn Fail: "Presidio IPO Fails To Ignite Investor Interest, Opens Below Range"

From Investor's Business Daily:
Technology unicorn Presidio (PSDO) began its first day of trading Friday by debuting below its offer price, showing subdued investor reaction following the more splashy initial public offering of Snapchat operator Snap (SNAP).

Late Thursday, Presidio raised $233 million, pricing 16.7 million shares at 14 each and the low end of its estimated range of 14-to-16. Presidio stock opened at 13.50 on the stock market today and climbed to 14, back to the initial offering price.

Presidio specializes in digital infrastructure, cloud computing and security solutions, with about 7,000 business and government customers. For the fiscal year ended June 30, Presidio reported revenue of $2.7 billion, up 14%, and a net loss of $3.4 million, vs. a net loss of $29.4 million the previous fiscal year. It competes against information technology giants such as Hewlett Packard Enterprise (HPE), IBM (IBM) and Accenture (ACN).

Presidio came to market with a valuation of about $1.3 billion, making it the first tech unicorn to go public since the much-larger Snap did last week....MORE