FireEye Inc. (FEYE:US), a maker of software used to protect computer systems from hackers, raised $304 million in its initial public offering after pricing its shares above a marketed range.
The company sold a larger than planned 15.2 million shares for $20 each, according to a statement. It may sell as many as 2.3 million more shares to cover over-allotments, according to the statement. FireEye had offered 14 million shares in a range of $15 to $17 apiece.
Cybersecurity is one of the fastest-growing areas of technology spending amid recent high-profile attacks, Bloomberg Industries said in a report last week. Software vendors including Cisco Systems Inc. (CSCO:US) and International Business Machines Corp. (IBM:US) have announced acquisitions of companies that develop the technology to capitalize on this trend.
The Milpitas, California-based company initially sought as much as $196 million, offering 14 million shares for $12 to $14 each, according to a regulatory filing on Sept. 9. The price range was increased this week.
The company plans to use the money to expand headcount, sales and marketing, product development and capital expenditures, the filing showed. Sequoia Capital and Northwest Venture Partners will continue to hold at least a 17 percent stake each after the offering, according to the filing.
The company posted a loss of $67.2 million in the six months to June 30, wider than the $14.3 million loss the year before, as operating expenses increased, filings show.
Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Barclays Plc are managing the sale. The stock will trade on the Nasdaq Stock Market under the symbol FEYE.
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