Palo Alto Networks Inc., the provider of Internet firewalls to businesses, increased the amount it’s seeking in its initial public offering this week by 8 percent, to $248 million.
The Santa Clara, California-based company and existing owners plan to sell 6.2 million shares for $38 to $40 each after earlier offering them for $34 to $37, according to a filing with the U.S. Securities and Exchange Commission today.
Palo Alto filed to raised its price range after people with knowledge of the share sale said last week the company had received more than enough orders to cover the offering. The IPO is scheduled to price on July 19 along with sales by Kayak Software Corp., Five Below Inc. and Fender Musical Instruments Corp., making it the busiest day for U.S. initial offers since March, according to data compiled by Bloomberg.
The midpoint of Palo Alto’s higher offering range would value the company at about $2.6 billion, or 12 times sales of $220 million in the 12 months through April 30, according to Bloomberg data. That’s more than double the average multiple of 5.7 for similar-sized peers such as Juniper Networks Inc., Check Point Software Technologies Ltd. and Sourcefire Inc., the data show.
The company, founded in 2005, is offering 4.69 million shares, while existing holders are offering 1.5 million, regulatory filings show. Venture firms Greylock Partners and Sequoia Capital aren’t selling shares and combined will own more than 41 percent of the company after the IPO.
Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc. are leading Palo Alto’s sale. The shares will be listed on the New York Stock Exchange under the symbol PANW.