Meet The Valley's Two Newest Multimillionaire Cofounders, Thanks To Gigamon's Hot IPO Today
It offered 6.75 million shares, with an initial price of $19 but investors pushed that up to over $23 almost the second its stock started trading. Shares are up about 35% now, at just under $26.
Gigamon makes technology that scans corporate and service provider networks to spot trouble before the network crashes. Its claim to fame is a product called GigaVUE, which can watch super high-speed networks (100Gb) in realtime without interfering with network traffic.
Gigamon's IPO pop is a windfall for its cofounders: Patrick Leong and Thomas Cheung. Leong sold 260,000 shares for ~$6.2 million (assuming a mid-way price of $24/share). Cheung let go of 200,0o0, which gained him ~$4.8 million (at $24/share). And that's just a fraction of what each cofounder is worth as of today. They each still hold over 2 million shares a piece, keeping 8.1% and 6.9% stakes, respectively.
The biggest winner of the day is venture capitalist investor Corey Mulloy, a partner at Highland Capital. His firm owns a 25% stake in Gigamon after selling 495,000 shares for about $11.9 million (at an estimated $24/share)
The company was aiming to net itself $80 million on the 4.5 million shares it sold on its $19 opening price. All around a good day for Gigamon.
It joins other great enterprise IPOs in the last few weeks: Tableau Software and Marketo.