UPDATE 1-FireEye surges in debut, puts cybersecurity in spotlight
(Adds comment from investor, Zscaler CEO)
Sept 20 (Reuters) - Shares in cybersecurity firm FireEye Inc almost doubled in their trading debut on Friday as the fast-growing company that helps businesses fend off hackers went public.
The success of the company's highly anticipated initial public offering put cybersecurity firms in the spotlight on Wall Street and caused at least one company in the industry to accelerate plans to go public.
"Security is hot. This will open the door for more companies to do this," said Kim Forrest, senior analyst with Fort Pitt Capital Group.
Jay Chaudhry, chief executive of cybersecurity firm Zscaler, told Reuters his company will push plans for its IPO ahead by six to nine months, following the success of FireEye's IPO.
"The window is open," he said.
FireEye uses modern cloud-based technologies to help businesses fight off computer viruses that evade old-school anti-virus software made by companies including Symantec Corp and Intel Corp's McAfee security division.
FireEye shares nearly doubled to $38.62 early Friday afternoon on Nasdaq following a late morning debut. The company sold about 15.2 million shares at $20 each, 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 before it began trading on Friday. 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 and Richard Chang)