Cybersecurity firm FireEye Inc was able to raise USD 304 million for its initial public offering. FireEye develops software that aimed to keep computer systems secure from hackers. The 15.2 million shares sold by the company were priced at USD 20 each. Initially, the company was only planning to sell 14 million shares with the price range of USD 15 to USD 17 per share. In a statement, FireEye said it may need to sell 2.3 million more shares for over-allotments.
Bloomberg Industries reported that the recent high-profile cyber attacks had made cybersecurity one of the more rapidly growing niches in technology spending. To capitalize on this segment, large software vendors like Cisco and IBM had already acquired cybersecurity firms.
The Milpitas, California-based FireEye said it would be using the proceeds of the IPO to increase its workforce and augment its sales and marketing efforts. It would also use the funds for product development as well as for capital expenditures. The filing also revealed that private equity firms Sequoia Capital and Northwest Venture Partners would own at least 17% each of FireEye after the IPO.
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