On Thursday, cloud computing company Nutanix thawed this year's chilly tech-IPO market, fetching a $2 billion valuation. Aside from a low volume of deals in 2016, only few companies reached a valuation above $1 billion in an IPO this year, including Line and Twilio.
The San Jose, Calif.-based company, ranked No. 86 on this year's Inc. 5000 list, had an IPO price of $16 per share, which is above the originally expected $11 to $13 range. Its shares started trading on the Nasdaq exchange Friday morning under the symbol "NTNX." The company's revenues rose more than 80 percent this year through July to $445 million, but still continued to post increasing losses.
Founded in 2009, Nutanix has raised more than $300 million in venture-backed funding. Although initially filing for an IPO last year in December, it postponed the date and issued a debt of $75 million to Goldman Sachs in order to raise its cash holdings.
The company's unique model combines both servers and storage systems in a single platform. The technology, also referred to as a "hyperconverged infrastructure," has attracted an impressive list of big clients, including Nintendo and the U.S. Department of Defense.
"Today's listing marks an important milestone on our journey as we continue to revolutionize the next generation IT infrastructure and computing that will help our customers realize the full potential of the Enterprise Cloud," said CEO in a statement.