Arista Networks Inc., a provider of networking equipment and services, and Mobile Iron Inc., a mobile-software developer, are delaying their initial public offerings to wait for better market conditions, people with direct knowledge of the matter said.
Both companies are waiting for technology share prices to improve before kicking off their promotional tours, said the people, who asked not to be identified because the decisions haven’t been made public. Box Inc., a cloud-storage provider, also recently opted to hold back its IPO, people familiar with the matter said last week.
Arista Networks and Mobile Iron will probably go public after May 26, the U.S. Memorial Day holiday, the people said. The Bloomberg Americas Software Index of 50 companies from Microsoft Corp. to Salesforce.com Inc. declined 3.4 percent in April as investors sold technology stocks in favor of companies with more stable earnings.
Mobile Iron, based in Mountain View, California, is seeking to raise $100 million, according to a prospectus filed on April 7. Arista Networks, a competitor of Cisco Systems Inc., first filed on March 31 to raise $200 million, and later boosted its target to $241 million.
Amanda Jaramillo, a spokeswoman for Santa Clara, California-based Arista, and Clarissa Horowitz, a spokeswoman for Mobile Iron, declined to comment yesterday, each citing their pre-IPO silent periods.
Technology companies such as “Candy Crush” game maker King Digital Entertainment Plc and network-service provider A10 Networks Inc. have slumped since their debuts.