Palo Alto Networks Boosts IPO to $38-$40 a Share

Palo Alto Networks Inc. Tuesday boosted the price range on its initial public offering, an indication that investor demand for the deal is running high.

The computer-network-security company, which is scheduled to begin trading Friday on the New York Stock Exchange under the symbol PANW, is now aiming to price its IPO between $38 and $40 a share. The company, which had originally set its range at $34 to $37, hasn't changed the number of shares in the offering, keeping it at 6.2 million.

The company has been attracting keen interest from investors, thanks to strong revenue growth--it more than doubled in the nine months that ended April 30--and its focus on replacing companies' older security firewalls with its own next-generation firewall system. IPO analysts are giving the deal high marks, citing it as the lead offering among nearly a half-dozen expected this week.

Also on deck for this week are offerings from search engine Kayak Software Corp., guitar maker Fender Musical Instruments Corp., discount retailer Five Below Inc., and pharmaceutical developer Durata Therapeutics Inc.

Write to Lynn Cowan at [e-mail]

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