Violin's (VMEM) price represents the midpoint of an $8-$10 range. It translates into a market cap of $736M, or 10x FY13 (ended Jan. '13) sales. Shares begin trading on Friday.
Though in a hot market (enterprise/data center flash storage) that has seen plenty of M&A activity as of late, Violin's IPO apparently failed to see the price increases witnessed by Rocket Fuel and FireEye. Are underwriters just being conservative, or are there concerns about strong competition (both from giants such as EMC and Cisco, and upstarts such as Nimble Storage) and the H-P deal wind-down?
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