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Investors: Get Ready For Two ~$100 Million Enterprise Tech IPOs On Friday

Investors: Get Ready For Two ~$100 Million Enterprise Tech IPOs On Friday
Enterprise2 min read

Don Basile CEO Violin Memory

Violin Memory

Don Basile CEO Violin Memory

Just because Dell, BMC Software and BlackBerry have taken themselves private doesn't means investors will be left out of the lucrative enterprise tech market.

This week alone, three more are going public:

RingCentral will begin trading on the NYSE on Friday. Shares are priced at $13 and the company will sell 7,420,000 shares while 80,000 more shares will be sold by stakeholders. If the stock proves popular, at $13, the company would raise about $96 million.

RingCentral offers businesses a cloud-based telephone system. All they need is an Internet connection. It had $115 million in revenue in 2012, and a net loss of $35 million. Revenue was $79 million in 2011.

Violin Memory will also debut on Friday. Violin raised gobs of venture funds - $186 million between its first round in 2010 and an $80 million fourth round last year. It will raise $180 million by selling 18,000,000 shares if it investors eat up its $10 opening price.

In its last full year, it earned $74 million and lost $109 million. It was heavily dependent on partner Hewlett-Packard to sell its wares before HP ended that deal about a year ago. Looks like it's recovered. In the first six months of this year, revenues are $51 million, so it could break the $100 million mark.

Violin offers enterprise storage systems based on flash memory, the same memory used in smartphones and thumb drives. This is a particularly hot area of enterprise tech these days but there is also a lot of competition.

Covisint's shares popped nicely in its IPO on Thursday. Covisint wasn't exactly a startup. It began in 2000 as an ecommerce platform for automakers and was sold off to Compuware for a pittance shortly after the Internet-bubble burst. Today it's in the sweet spot of secure cloud services for everything from inter-enterprise communications to hosting cloud apps. Shares opened at $10 and closed at $12.31, up 23%, raising about $60 million.

All of this action follows the successful first day pop for enterprise security company FireEye last week, too.

All told a whopping 13 companies went public this week.

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