Switch IPO: Group hopes to take advantage of rise in data traffic
Switch Inc is looking to benefit from the rapid rise in data traffic and the world’s reliance on the internet to deliver services and information, which the company argues, is making the collection, storage and transfer of data one of the largest challenges created by the internet. The comments came in its initial public offering (IPO) filing earlier this week. The Switch IPO is set to come in a stellar year for floats, with worldwide public listings on track to register their best year since 2007.
Switch, which designs, constructs and operates data centres, quoted a white paper published by Cisco Systems, as forecasting that global internet traffic will grow to 15.3 zettabytes by the end of the decade, up from 4.7 zettabytes in 2015. Similarly, total data centre storage installed capacity is expected to grow at a 35 percent CAGR (compound annual gross rate) to 1.8 zettabytes in 2020 from 0.4 zettabytes in 2015.
The company presented the data in the filing of its upcoming IPO which will see Switch aim to raise $550 million.
The Switch IPO comes amid a strong year for floats. CNBC quoted the latest global IPO trends report from Ernst Young as showing that the number of listings so far this year has already surpassed the full-year figures for last year, with 1,156 public listings done, marking an increase of 59 percent by number compared to a year ago. So far, IPOs have raised $126.9 billion, 55 percent more than at the same time last year.
Going forward, the US IPO calendar includes Singapore-based entertainment platform Sea, as well as streaming device maker Roku, which has reportedly priced its shares at $14 apiece, at the top end of its initial guidance.