FireEye, Rocket Fuel Price IPOs

(RTTNews) - FireEye, Inc. (FEYE), a cybersecurity provider, and Rocket Fuel Inc. (FUEL), an advertising technology company, announced Friday the pricing of their respective Initial Public Offerings or IPOs. FireEye priced 15.18 million shares at $20 per share, raising $303.6 million, while Rocket Fuel priced 4 million shares at $29 per share, raising $116 million.

The stock sale reportedly values FireEye at $2.3 billion and Rocket Fuel at $942.5 million.

FireEye earlier had expected to price the offering of 14 million shares between $15.00 and $17.00 per share. In early August, the company had filed a registration statement with SEC to raise up to $175 million in the IPO, without specifying the number of shares to be sold and the pricing.

FireEye now said it has granted the underwriters a 30-day option to purchase up to an additional 2.28 million shares to cover over-allotments, if any.

The company expects shares to begin trading on the NASDAQ Global Select Market today under the symbol 'FEYE'.

FireEye, as said earlier, it intends to use the proceeds for headcount expansion, working capital, sales and marketing activities, product development, general and administrative matters, and capital expenditures.

The Milpitas-based company has raised more than $100 million in venture funding since it was founded in 2004.

FireEye provides automated threat forensics and dynamic malware protection against the next generation of cyber attacks. The company has invented a purpose-built, virtual machine-based platform that provides real-time threat protection. It has over 1,000 customers across more than 40 countries.

For the first half of 2013, the company's net loss widened to $67.1 million from $14.3 million during the same period last year. The wider net loss reflects a strong rise in operating expenses, which offset the steady revenue growth.

For the offering, Morgan Stanley & Co. LLC, Goldman, Sachs & Co., J.P. Morgan Securities LLC and Barclays Capital Inc. are acting as lead joint bookrunners. BofA Merrill Lynch and UBS Securities LLC are acting as other book-running managers. Nomura Securities International, Inc. is acting as a co-manager for the offering.

In its statement, Rocket Fuel said the company is offering all shares in the IPO, and the stock is expected to begin trading on the NASDAQ Global Select Market today under the symbol 'FUEL'.

Further, the underwriters were given a 30-day option to buy up to 600,000 additional shares at the IPO price from certain existing stockholders of Rocket Fuel to cover over-allotments, if any.

The Redwood City, California-based Rocket Fuel delivers a programmatic media-buying platform at big data scale to use the power of artificial intelligence in digital media across web, mobile, video, and social channels. It had 784 active customers, as of June 30.

For Rocket Fuel's offering, Credit Suisse and Citigroup are acting as joint bookrunners. Needham & Company, Oppenheimer & Co., Piper Jaffray, BMO Capital Markets, and LUMA Securities are acting as co-managers.