Barracuda Networks surges in 1st day of trading on the New York Stock Exchange

NEW YORK, N.Y. – Shares of Barracuda Networks Inc. jumped in their debut on the New York Stock Exchange on Wednesday.

The cloud-based security and storage services provider’s stock climbed $4.92, or 27.3 per cent, to $22.92 in morning trading.

Barracuda priced the initial public offering of 4.14 million shares at $18 each. That was at the low end of the expected price range of $18 to $21 per share.

The Campbell, Calif., company raised more than $74 million from the offering.

Barracuda is giving the underwriters a 30-day option to buy up to 621,000 more shares to cover any excess demand.

The company said in a regulatory filing that it plans to use the offering’s net proceeds mostly for capital expenditures and general corporate purposes, including working capital, sales and marketing activities, product development and general and administrative matters. It may also use part of the proceeds for acquisitions or investments.

For the year ended Feb. 28, Barracuda reported a loss of $9.2 million on revenue of $198.9 million. In the previous year it reported a profit of $466,000 on revenue of $160.9 million.

The stock is trading under the “CUDA” ticker symbol.