Feeds

Wall Street votes for Linux in Red Hat IPO

Stock triples against market trends

  • alert
  • submit to reddit

Intelligent flash storage arrays

Updated Red Hat beat the blues with its IPO yesterday, with its stock price tripling, despite clear evidence in the past few days that investors are becoming more sceptical about technical and Internet-related stocks. The Linux outfit raised $84 million on six million shares, after a last minute increase in its pricing from $10-12 to $12-14. With hindsight this move was amply justified. Red Hat ended the day valued at $3.48 billion. Not bad for a company that had sales of just $2.8 million in the quarter to 31 May -- during which period it lost $2.1 million. The shares ended the day at $52 1/16 -- an increase of 272 per cent. Red Hat CEO Robert Young and CTO Marc Ewing, each owning 9.1 million shares, are now worth $470 million on paper apiece. Clearly, although the Internet IPO phenomenon might be starting to burn out, the Linux factor is able to counteract this decreasing enthusiasm, and that's good news for the stack of Linux outfits waiting to IPO. Wall Street does seem to have decided to vote for Linux, so even if the Web bubble is finally starting to burst, the Linux industry should be well positioned to raise cash from investors for the immediate future. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.