Arcsight IPO which was issued in February 2008. On the first day of trading, Arcsight’s IPO did not perform well. Moreover, in the previous year, the company witnessed a huge loss. Therefore, lot of risks are associated with Arcsight IPO.
ArcSight, a management and security software provider based in Cupertino, planned to issue initial public offer (IPO) in 2007. It finally issued the IPO in February 2008. ArcSight’s is a big name in the area of event management and security information. It had been established in 2000, it facilitates over 350 million customers with its products and services across the globe.
In 2007, the amount of revenue generated by the company was 69.8 million dollars. The company planned to release more than 74 million shares for the public. ArcSight’s public issue would be traded under the symbol “ARST.” on the NASDAQ global market.
In 2007, another two IT security companies also went for public issue. Those were, Sourcefire and 3com. Therefore, the success of ArcSight IPO will depend on these two IPO’s performance.
However, the price ranged between 9 to 11 dollars per share. Arcsight IPO did not perform well in its first trading day. The reason behind that is, the company has to fight with some big IT security players like, CISCO, Symantec etc.
Reason Behind IPO:
By issuing an IPO, ArcSight planned to collect huge money from the public for several reasons.
The company wanted to invest more money in research and development.
ArcSight aimed to increase its working capital.
The company witnessed a huge loss, precisely 2,570,00 million dollars, for the financial year of 2007. However, the loss amount was less than that of 2006. Therefore, the bottom line is, the company has not been performing well during the last couple of years. So a certain amount of risk is definitely associated with ArcSight IPO.
|IPO Process||IPO Grading|
|IPO Underwriter||IPO Hedge Fund|
|IPO Price||Online Penny Stock|
|IPO Book Building||Recent IPO|
|IPO Allocation||IPO Filings|
|IPO Analysis||SEBI Scam|
|Pre IPO||IPO Stocks|
Last Updated on : 30th July 2013