RingCentral, the cloud-based phone service, will open trading tomorrow on the New York Stock Exchange at $13 per share, offering 7.5 million shares and raising $97 million. It will trade under the ticket symbol “RNG.”
Violin Memory, a Flash memory provider, will also debut tomorrow under the symbol “VMEM.” Its final trading price has not been disclosed, but a mid-range of $9 per share would not be unexpected.
RingCentral helps small businesses manage mobile, fax and e-mail communications through its cloud service. It is one of an emerging class of companies that fits into a new world of the workplace by using the cloud to automate the phone tree. It abstracts the PBX just as software and service providers are abstracting almost any hardware you can imagine, turning every mobile device into an extension designed in particular for today’s work. It helps remove the struggle that comes with typing in a password for conference calls while in the car or routing SMS messages to the right people.
The IPO had been expected to open between $11 and $13 per share. By opening at the high end, the company is signaling it is pretty confident about its chances in the public markets.
Founded in 1999, RingCentral has $44 million in funding. It raised its first $12 million round in 2007 from Khosla Ventures and Sequoia Capital.
According to public documents, the company posted revenues in 2012 of $114.5 million. In 2011, it had revenues of $78.9 million and $50.2 million in 2010.
Violin Memory’s Flash memory technology adds storage performance for applications, servers and networks in enterprise environments.
Both the IPOs reflect the strong IPO market, especially for enterprise startups that leverage the cloud and the need for applications and infrastructures to manage large amounts of data.