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Switch Inc's IPO prices at US$17 per share

[BENGALURU] Switch Inc raised about US$531.3 million from its initial public offering which was priced at US$17 per share, making the data-centre operator the second-largest US technology listing this year.

The 31.3 million Class A share offering was priced above the proposed US$14 to US$16 per share range, giving it a market value of as much as US$4.2 billion.

Switch Inc, which was incorporated in June for the purpose of issuing the Class A shares in this offering, intends to use the proceeds to buy out investors in Switch Ltd and take control of it as a holding company.

Las Vegas-based Switch Inc, whose major customers include Inc, eBay and PayPal Inc, helps enterprises manage data by renting out its cloud service infrastructures on a contractual basis.

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The company, which also operates data centres in Michigan and Reno, Nevada, posted net income of US$35.3 million for the six months ended June 30, flat compared with the year-ago period.

Goldman Sachs & Co, JP Morgan, BMO Capital Markets, Wells Fargo Securities were among top underwriters to the offering.