Pure Storage Inc., the second-biggest seller of all-flash storage systems, filed for an initial public offering in the U.S.
The company is using a $300 million placeholder for the offering size, a figure used to calculate fees that will change. Pure Storage, based in Mountain View, California, plans to use the proceeds from the IPO to expand product development and for sales and marketing.
Pure Storage competes with EMC Corp. and other companies to sell storage systems with flash technology, which uses chips rather than spinning disks to speed up things such as websites and internal applications. Pure Storage is the No. 2 player behind EMC, according to Gartner Inc., in a market that Gartner forecasts will be worth $2.6 billion this year. Flash storage is pricier than traditional hard-drive storage but it’s faster and customers can save money on upkeep and electricity.
Pure Storage garnered a $3 billion valuation in a financing round led by T. Rowe Price Group Inc., the company said in April 2014.
The company generated $174 million of revenue in the fiscal year through Jan. 31, more than quadruple the amount from a year earlier, according to the IPO registration statement filed on Wednesday. Over that same period, Pure Storage’s net losses more than doubled to $183.2 million.
Pure Storage’s venture capital investors include Greylock Partners, Sutter Hill Ventures and Redpoint Ventures.
Morgan Stanley, Goldman Sachs Group Inc., Barclays Plc and Allen & Co. will manage the offering. Pure Storage, which didn’t indicate an exchange, plans to list under the ticker symbol PSTG.