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3PAR Lowers IPO Target

Thin provisioning specialist 3PAR has set the terms for its imminent IPO, lowering its estimate from $100 million to $81 million.

In an amended form S-1 filed with the SEC late last week, 3PAR confirmed its plans to offer 7,500,000 shares priced at between $11 and $13, and said it expects to raise $81 million.

This is almost $20 million less than the figure described in 3PAR's initial S-1 filing three months ago, reflecting a more cautious approach from the vendor.

3PAR's decision to change its pricing was likely prompted by rival Compellent's recent IPO, according to Scott Sweet, senior managing partner of analyst firm IPOBoutique.

"In my opinion, Compellent had a much too high valuation and came down hard and fast in the days following the offering," he says, highlighting the falling value of the vendor's shares.

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