Palo Alto Networks raises IPO price range
Palo Alto (PANW) increased the price range for its IPO to between $38 and $40 a share, up from $34 to $37 a share. The company specializes in Internet security software and technology for businesses. It still plans on offering 6.2 million shares in its IPO, which is scheduled to price after Thursday's market close.
"The demand among retail and institutional investors is exponentially oversubscribed," and IPO Boutique's Scott Sweet. "Some of Palo Alto's competitors like Cisco (CSCO) and Juniper (JNPR) have even said they are formidable."
While anticipation has grown for Palo Alto's IPO, in particular, it isn't the only company going public this week that has seen more attention lately.
Five Below Inc., a low-cost retailer specializing in teen merchandise that costs $5 or less, raised its IPO price range to between $15 and $17 a share from $12 to $14. Five Below is set to price after trading ends on Wednesday, with the company offering 9.6 million shares in its IPO.
Other IPOs scheduled for this week include online travel information aggregator Kayak Software Corp., set to price 3.5 million shares on Thursday at between $22 and $25 a share, and Durata Therapeutics Inc., which plans to price its stock after Wednesday's close of trading. Durata has so far set a price range of $11 to $13 a share for the 6.25 million shares it intend to offer to the public.
One planned IPO that might end up not opening to expectations is Fender Musical Instruments Inc. Sweet said that retail interest in the maker of the iconic Fender guitars has remained high, but "institutional investors have been taking a different view and questioning the value" of the IPO stock.
Sweet said he wouldn't be surprised if Fender ends up pricing its IPO even lower than the price range of $13 to $15 a share for the 10.7 million shares it plans on selling after it prices late Thursday.