Presidio Incorporated IPO
Presidio Inc. is a company that mainly serves the middle market of North America. It provides this market with IT solutions and digital infrastructure. According to the ‘About Presidio’ section of the company’s website, Presidio presents itself as “a leading IT solutions provider assisting clients in harnessing technology innovation and simplifying IT complexity to digitally transform their businesses and drive return on IT investment.” The firm also provides services in the Cloud and digital security areas.
Further, Presidio Inc. is involved in the analysis of client and consumer information from digital revenue streams, enabling the company’s customers to access valuable market intelligence. This information is used in predicting trends as well as to provide in-house solutions for Presidio’s clients. The company was founded in 2003 and currently has close to 7,000 customers consistently seeking IT solutions along with the other services Presidio offers. Toward the end of the year, Presidio’s management announced it was going to go public in coming times and filed for its IPO on November 22nd, 2016.
The company had its Initial Public Offering on 9th of this month where it sold 16.7 million shares to eager investors. Each share was priced at $14 which was at the lower range of the expected stock price. The range had been announced as $14 – $16. Presidio managed to raise $233 million in its offering. This new release was the first tech IPO after much larger Snap Inc. had its release in the previous week. J.P. Morgan and Citigroup served as lead underwriters for the company’s offering.
The major shareholder of the company remained as Apollo Incorporated. Book-running managers for this offering included Barclays and RBC Capital Markets. Apollo Global Securities, Guggenheim Securities, and Lion Tree were the co-managers for Presidio’s release. Additional book-running managers for the offering included Credit Suisse, Goldman, Sachs & Co., Wells Fargo Securities and Evercore ISI.
Before its offering, Presidio had recorded a revenue of $2.7 billion for its 2015 – 2016 fiscal year that ended on 30th June. This was a 2.7 percent increase in the firm’s revenue. The company also saw a substantially decreased loss, having a loss of $3.4 million in the same fiscal year as compared to its loss of $29.4 billion in the 2014 – 2015 fiscal year.
On its first day on the trading floors, Presidio’s stock opened at $13.50, a decrease of $0.50 from the price it was offered on. It achieved highs of $14 throughout the day and closed its first day at $14.25. This was, overall, a 1.8 percent increase in the value of the company’s stock. The company is currently trading under the ticker PSDO.
Presidio Inc. hopes to flourish in the stock market against its competitors Hewlett-Packard Enterprise (HPE), IBM and Accenture (ACN) who have dominated the Information Technology industry over time.
The release of this company hoped to attract a significant number of investors after the hugely successful offering of Snap Inc. on March 1st. Snap’s release hoped to rekindle the dying flames within the IPO market, where drops have been seen from 2015.