SolarWinds IPO Update: SWI Confirms Initial Public Offering Price -

SolarWinds has refined its IPO plan amid technology stock turbulence on Wall Street. The company will now seek to sell roughly 25 million shares at about $16 per share.

Updated October 19, 2019: SolarWinds (SWI) has now confirmed plans to go public today at $15 per share.

Check ChannelE2E at 2:00 p.m. ET today. We'll post an interview with Chief Revenue Officer (CRO) David Gardiner about today's IPO and the long-term business strategy.

The shares began today on the New York Stock Exchange (NYSE), and were down about 1.1 percent at $14.83 as of noon ET. In addition, SolarWinds has granted the underwriters a 30-day option to purchase up to an additional 3.75 million shares, the company indicated.

When you factor in shares owned by private equity firms and SolarWinds insiders, the overall math would value SolarWinds somewhere in the $4.5 billion neighborhood.

Today's IPO price is lower than previous SolarWinds IPO goals. Earlier, the company was striving to sell about $42 million shares at about $17 to $19 per share, according to SeekingAlpha.

Technology Sector Turbulence

In recent days, the tech sector has experienced turbulence amid weak IBM earnings and concerns that other tech companies may be overvalued amid the multi-year bull market.

Amid that backdrop, the SolarWinds returned to public markets today. Private equity firms Silver Lake and Thoma Bravo will maintain their major stakes in the IT management software company.