I mentioned Fusion-io (FIO) last week as a potential hot IPO. Looks like institutional demand is still running hot despite a market that is deteriorating, as the offering price was upped significantly.
- The technology IPO rush continues this week as Fusion-IO, the developer of flash- memory technology for companies, increased the price of its IPO to $16 to $18 per share. The company had previously priced its shares at $13 to $15 per share, which valued the company at as much as $1.17 billion. The increase announced today puts Fusion-io’s total value at $1.4 billion.
Sometimes you can snag an IPO at a much better price if it prices on a particularly poor day in the general market, so we shall see what Thursday brings. Now again the next quarter reported might be choppy as the Facebook account (about half of last quarter’s sales) is supposed to drop significantly but I don’t think that will matter for the first weeks it trades.
Tech Insidr blog did a great background story on the company, so if interested see here.
Fusion-io has plenty of star power too: Apple and Facebook are major customers, cult figure and Apple co-founder Steve Wozniak is their Chief Scientist, and they are bankrolled by legendary tech investors Michael Dell and Marc Andreessen.
Although the story has captivated investors, Fusion-io didn’t get to where they are at by being popular or being associated with prestigious companies in the technology world. Behind the glitz and glamor is a nuts-and-bolts technology story.