Fusion-io prices its IPO at $19 per share

The flash storage company would be worth about $1.5 billion at that price

Flash storage company Fusion-io, which counts Apple co-founder Steve Wozniak as its chief scientist, has priced its initial public offering (IPO) at US$19 per share, valuing the company at about $1.5 billion.

Fusion-io makes flash storage for servers that comes on a PCI Express expansion card, offering faster throughput than conventional SSDs (solid-state drives), which use SATA (Serial ATA) interfaces like those on hard disk drives. Though flash is more expensive than hard disks, enterprises are beginning to adopt it for fast access to frequently used data.

The company, in Salt Lake City, was founded in 2007 and filed for its IPO in March.

On Thursday, a total of about 12.3 million shares of Fusion-io will go on sale on the New York Stock Exchange, where the company's ticker symbol will be FIO. Of those, about 1.5 million will be offered by existing shareholders. Counting shares that the underwriters have an option to buy, the offering should put approximately $240 million in the company's hands. Fusion-io has a total of 77.8 million shares outstanding, making the whole company worth 1.5 billion at the $19-per-share price.

The final price for Fusion-io was over the company's earlier estimate of between $16 and $18.

IPO prices have returned to the spotlight and to controversy lately, after online business networking site LinkedIn went public on May 19 at $45 and instantly soared past $100 per share. Some observers said the starting price may have been deliberately set low to create a profit for the merchant banks that underwrote the offering.

Wozniak, who founded Apple along with Steve Jobs in the 1970s, joined Fusion-io in 2009.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesstorageFusion-io

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?