Fortinet’s IPO launched today. It went about as well as possible, with the shares, trading under the symbol “FTNT,” up $4.12 (32.96 percent).
I provided an overview on the Fortinet IPO yesterday, and what transpired today was consistent with my expectations. As a quality company, Fortinet offered a quality IPO. The market, which hasn’t seen many new technology issues in recent years, was appreciative.
From here, Fortinet shares might face some headwinds. With the company’s shares jumping impressively on their first day of trading, Fortinet now has a significantly higher market capitalization than it had before its stock began changing hands. That factor must be considered carefully in any assessment of buying into the company’s shares at the current price.
Examining the chart for Fortinet’s first day of trading, I see that its stock surged as soon as it hit the market, hitting $17.18 per share. It then dipped as low as $16.53 per share at about 11:44am Eastern before bouncing its way to a closing price of $16.62.
All in all, it was a good day for Fortinet, its financial backers, and its underwriters. As mentioned above, the market hasn’t seen many strong information-technology issues recently.