Violin Memory projects USD180 million proceeds from its IPO
Violin Memory, the flash storage provider backed by Toshiba Corp, is projecting to raise as much as USD180 milion through its public offering of a volume of 18 million shares. The company had planned the IPO since 2011, with the share price to be between USD8 and USD10 per share. The total valuation would be over USD800 million.
For its part, Toshiba's holdings in the memory storage firm would decline to 11% from 14% after the public offer.
The demand for flash memory storage products have increased with the pervasive use of smartphones and tablets because of the faster capacities compared to traditional hard drives. Many other companies in the industry had also received funding from institutional investors.
One of these firms is Pure Storage, which recently raised USD150 million from investors, increasing its enterprise value at more than USD1 billion. For its part, Violin stated in regulatory documents filed that the capital raised would be utilized for capital purposes and repayment of debts.