June 12--Today: Silicon Valley's second IPO in a week goes off without a hitch, as MobileIron brings in $100 million and rises healthily in debut. Also:
The Lead: MobileIron jumps after IPO values firm at more than $600M
Mountain View mobile-management firm MobileIron raked in $100 million in its initial public offering and found more willing buyers Thursday on Wall Street, with shares gaining more than 20 percent in their debut.
The 7-year-old company priced its batch of 11,111,111 shares in the middle of its $8-to-$10 range at $9, establishing an initial valuation of $671.8 million. When the stock hit the Nasdaq floor under the ticker symbol MOBL on Thursday, it experienced immediate gains and closed 22.4 percent higher at $11.02.
MobileIron's products help companies manage their employees' mobile devices, a market that has grown as smartphones and tablets have become more popular for many workers than personal computers. Sunnyvale rival Good Technology is also in the IPO pipeline, and
"The enterprise mobility market is a massive market that's happening right now," MobileIron CEO Bob Tinker told Bloomberg Television on Thursday, later adding, "The business and the market was ready" for an IPO.
MobileIron's ability to go public and gain in its debut is a strong sign that Silicon Valley's IPO market has come back to life after a sharp drop-off early in the second quarter, when tech stocks suffered on Wall Street, led by big losses for companies that had recently gone public. MobileIron reportedly delayed its IPO from a planned April entry, along with other anticipated Silicon Valley offerings from Box and
"The markets debated whether certain tech companies were fairly valued, not whether these companies would be worth meaningfully more in the future," Byron Deeter, a partner at Bessemer Venture Partners, told The Information.
With that backdrop, Silicon Valley companies going public now are seemingly more conservative when choosing a price to ensure success: ZenDesk's pricing gave it an initial market cap lower than its most recent private valuation, for instance.
The IPO market's health is especially important with the robust lineup of tech companies headed for Wall Street after MobileIron, which includes Box, San Mateo action-camera company
SV150 market report: Stocks fall, but Intel and Twitter get a boost
Wall Street didn't follow MobileIron's trajectory Thursday, as stocks tumbled despite a boost for Intel and Twitter.
Intel only gained 0.1 percent to $27.96 in Thursday's regular session, but the Santa Clara chipmaker leapt to more than $29 in after-hours trading following an announcement that could spread cheer to other companies that rely on PCs for a big chunk of their sales. Intel raised its revenue forecasts for the current quarter after the markets closed, revealing that the market for PCs has unexpectedly grown thanks to enterprise purchases. Intel said that it expects to make $700 million more than pr