Andover, Massachusetts-based Casa Systems had a tricky time pulling off its IPO this week.
The broadband answers corporate first of all sought after to debut Thursday, however driven its release again to Friday, most probably because of susceptible preliminary call for. Casa had deliberate to promote eight.four million stocks, however decreased it to six million, following the investor roadshow, the place firms pitch institutional buyers and different IPO patrons.
The IPO was once slated to value between $15 to $17 in step with proportion, nevertheless it priced at $13, elevating $78 million as opposed to the $134.four million it will have raised on the midpoint of the variety on the unique deal measurement. But on a greater word, the inventory bounced up nearly 11% from its $13 IPO worth, final the day at $14.40.
Here’s how Casa describes its business in its IPO submitting: “We provide a suite of software-centric infrastructure solutions that allow cable service providers to deliver voice, video and data services over a single platform at multi-gigabit speeds. In addition, we offer solutions for next-generation distributed and virtualized architectures in cable operator, fixed telecom and wireless networks.”
The corporate introduced in $316.1 million in income for 2016. This compares to $272.five million for 2015. Casa posted a benefit final 12 months of $88.nine million, up from $67.nine million in 2015.
In the “risk factors” phase of the prospectus, Casa warned that it’s closely reliant on purchasers like Time Warner Cable and Liberty Global.
Founded in 2003, the corporate had won a disclosed $100 million in challenge capital, basically from Summit Partners, which owned a sizeable 52.1% of Casa Systems previous to the IPO. Liberty Global Ventures owned 6%.