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Switch Inc. Aims for Third-Biggest Tech IPO of the Year

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Switch Inc. aims to raise as much as $500 million in its initial public offering, which would make it the third-biggest U.S. technology listing of the year.

The data center company intends to sell 31.25 million shares at $14 to $16 apiece, according to a filing Monday with the U.S. Securities and Exchange Commission. At the high end of the range, the IPO would value the Las Vegas-based company at about $4 billion.

Switch could trail only Snap Inc.’s $3.9 billion IPO and Altice USA Inc.’s $2.2 billion share sale for biggest tech and communications deals this year, according to data compiled by Bloomberg. The next-biggest is a step-down in size with WideOpenWest Inc.’s $356.5 million deal.

Goldman Sachs Group Inc., JPMorgan Chase & Co., Bank of Montreal and Wells Fargo & Co. are leading the offering, according to the filing. Goldman Sachs and JPMorgan have an equal fee split while JPMorgan will be the so-called syndicate trading manager, also known as the stabilization agent for the early trades, said a person with knowledge of the matter, who asked not to be identified because the matter is private. It’s a coveted position for underwriters, coming with the added responsibility of overseeing first-price setting and managing the additional shares allotted to underwriters.

Switch designs, constructs and operates data centers and has been profitable for at least the past four years. The company posted 2016 net income of $31.4 million on revenue of $318.4 million, according to the filing. The previous year, it had net income of $73.5 million on revenue of $265.9 million.

The company intends to list on the New York Stock Exchange under the symbol SWCH.

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