Carbon Black stock started trading on the Nasdaq this morning at $24.70 under the symbol CBLK. The security company last night said it priced its initial public offering (IPO) of 8 million common stock shares at $19 per share, raising $152 million.
It originally filed for an IPO in April, with plans to sell 8 million shares for $15 to $17 apiece. The company raised the IPO price on Wednesday to $17 to $19 per share before landing on the high end of the range.
“We’re euphoric,” said Tom Barsi, SVP of corporate and business development at Carbon Black, from the floor of the stock exchange. “Obviously we raised our range, we priced our IPO at the high end of our range, and we’re trading roughly up 30 percent. We’re super happy, super excited.”
Barsi said there’s a “pretty straightforward” reason for the this: legacy endpoint protection platforms don’t work. “That model is completely broken and doesn’t work,” he said. “Customers are starting to rip and replace their legacy solutions. We’re transforming the end-point market with big data, analytics, and the cloud. It’s going to be a horse race.”
The company was originally founded as Bit9 in 2003. Bit9 acquired Carbon Black in 2014, and in February 2016 Bit9 changed its name to Carbon Black. The Waltham, Massachusetts-based company has raised $191.7 million in 17 funding rounds, according to Crunchbase.
Its predictive security cloud platform, Cb Defense, captures and analyzes endpoint data in real time. The platform also integrates with a number of other products from more than 70 vendors including VMware, IBM, and Splunk.
Rumors have swirled for years about a Carbon Black IPO, but Barsi said now was the time because “we have the scale, the team, the growth rate, the path to profitability. We’ve been focused on building a standalone, enterprise cybersecurity company from the get-go.”
The funding will allow the company to expand globally and continue to invest in its security platform, Barsi said. “This is a $19 billion market,” he said. “We see an opportunity to double down on our predictive security cloud.”
The company’s public debut follows several other recent high-profile tech IPOs including Pivotal Software, which started trading on the New York Stock Exchange late last month after setting its IPO share price at $15.