Fastly Enters the Market With a Bang
Fastly Inc. (NYSE: FSLY) entered the market with a bang on Friday. In its initial public offering (IPO), the stock opened at $21.50, although it originally priced at $16. the offering was 11.25 million shares, with an overallotment option of 1.687 million shares. At the original price, the entire offering was valued up to $207 million.
The underwriters for the offering are Merrill Lynch, Citigroup, Credit Suisse, William Blair, Raymond James, Baird, Oppenheimer, Stifel, Craig-Hallum Capital and D.A. Davidson.
Fastly is pioneering the “edge cloud,” converging a content delivery network with application delivery controllers, web application firewalls, bot detection and distributed denial of service solutions. Its infrastructure-as-a-service model serves as a supplement to data centers, central clouds and hybrid solutions.
In the filing, the firm described its finances as follows:
We have achieved significant growth in recent periods. Our revenue was $104.9 million, $144.6 million, $32.5 million, and $45.6 million for the years ended December 31, 2017, December 31, 2018, and the three months ended March 31, 2018 and March 31, 2019, respectively. We incurred a net loss of $32.5 million, $30.9 million, $9.3 million, and $9.7 million for the years ended December 31, 2017, December 31, 2018, and the three months ended March 31, 2018 and March 31, 2019, respectively.
Fastly intends to use the net proceeds from this offering for working capital and other general corporate purposes, as well as to pay down debt.
Shares of Fastly were last seen up about 42% at $22.69, in a range of $21.50 to $23.52 on the day thus far. About 6.6 million shares had moved as of 11 a.m. Eastern.