Isilon Systems, a leading provider of massively-scalable storage systems optimized for managing and delivery digital content, priced its 8.35 million share offering at $13, 37% above the high end of its original $8.50-$9.50 range. Earlier in the day, the company bumped up its intended price range to $11-$12 in response to overwhelming investor demand. The $13 offer price gives the company a current market value of $867 million. Since the company launched its first product in 2003, it has experienced robust growth with year-to-date revenue reaching $42 million, up 236% over the prior year period. Morgan Stanley and Merrill Lynch were the lead underwriters on the offering. The stock is expected to open for trading on Friday under the symbol "ISLN" on the Nasdaq Global Market.
Isilon Systems' IPO follows a handful of recent high-growth networking IPOs that have been extremely well received by investors, including Riverbed Technology (RVBD) and Acme Packet (APKT), which have produced total returns of 212% and 93% from their respective IPO prices.
