FireEye shares more than double after cybersecurity firm's IPO
Sept 20 (Reuters) - Shares in cybersecurity firm FireEye Inc more than doubled in their trading debut on Friday following their initial public offering as investors rushed to snap up shares in the fast-growing company that helps businesses fend off hackers.
The shares more than doubled to $43.10 as they opened trading on Nasdaq. The company sold some 15.2 million shares at $20 per share, above its proposed price range.
FireEye's revenue jumped nearly seven times to $83.3 million between 2010 and 2012, while its net losses widened to $35.8 million from $9.5 million during the same period.
"The valuation is astronomical, but so is the revenue growth rate," said Tim Ghriskey, chief investment officer with Solaris Asset Management.
"For many investors this is nosebleed territory - especially since the stock has opened at twice the IPO price," he added.
The IPO price valued FireEye at about $2.3 billion. The company raised about $304 million from the offering. All the shares in the IPO were sold by the company.
(Reporting by Jim Finkle; Additional reporting by Neha Dimri and Sagarika Jaisinghani; in Bangalore; Editing by James Dalgleish)