By                                                     Steven J. Vaughan-Nichols

SUSE IPO disappoints

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2021-05-20 21:30:09

By Steven J. Vaughan-Nichols for Linux and Open Source | May 20, 2021 -- 20:17 GMT (13:17 PDT) | Topic: Tech Industry

Swedish private equity firm EQT had high hopes for its SUSE IPO on the Frankfurt Stock Exchange, and set the European Linux and cloud power's IPO price at €30 per share. Alas, SUSE's shares opened at €29.50 per share. 

By the close of business on May 20th, the stock crept up to €30.39. This gave it a market cap of around €5 billion (approximately $6.1 billion). This is nothing to sneeze at, but it wasn't what EQT hoped for either. Before the IPO, EQT had sought an IPO price as high as €34 per share.

Still, this was no failure. SUSE and its backers sold 37.8 million shares in the IPO, for €1.1 billion. EQT is still keeping a stake. SUSE itself continues to do well with reported revenue of $503 million for the 2020 financial year.

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