Data Center Owner Switch’s IPO To Be The Third-Largest Tech Offering This Year

data center

Data center provider Switch Inc. is planning to offer 31.25 million shares to the public at between $14 and $16/share, which would make it the third-largest tech IPO this year.

The initial public offering is estimated to yield $500M and could put the company value at close to $3.7B if shares are sold at the midpoint of the range, Data Center Knowledge reports.

This would leave Switch in third place only after Snap Inc.'s $3.9B IPO and Altice USA's $2.2B share sale, according to Bloomberg.

When it comes to voting power, Switch has been careful to structure the deal so that only the company’s management will continue to maintain control. Founder, CEO and Chairman Rob Roy would retain 67.7% of the voting power with his ownership of all Class C common stock. Class A and Class B common stock would go to those who own stakes in the company and will provide each owner one vote per share.

If successful, Switch will join a growing list of publicly traded U.S.-based data center providers, including Equinx, Digital Realty Trust, CoreSite, CyrusOne, QTS and Iron Mountain.

The company currently has 800 customers, including eBay, and has experienced a compound annual growth rate over 24% over the last three years, according to Data Center Knowledge.

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