BigBand Bounces 31% in IPO3/15/2007 4:14 AM Eastern
BigBand Networks, the first cable-equipment provider in recent years to go public, saw its stock run up 31% during its opening day of trading Thursday.
The company’s stock closed at $17 per share, up $4 over the $13 initial offering price. The offering raised some $139 million for BigBand before underwriting discounts and commissions.
BigBand itself said it would sell 7.5 million shares with other stockholders selling 3.2 million. BigBand’s common stock is listed on NASDAQ under the symbol BBND.
In an S-1 filing with the Securities and Exchange Commission, BigBand said it intends to use the net proceeds from the initial public offering to pay off $14 million in debt with Silicon Valley Bank, and it plans to use the rest as working capital and other general corporate purposes. The company also said it may use the funds to acquire businesses, products or technologies.
BigBand, which sells video-processing and data-networking equipment, has more than 100 customers worldwide, including the top five U.S. MSOs -- Cablevision Systems, Charter Communications, Comcast, Cox Communications and Time Warner Cable -- and Verizon Communications.
The Redwood City, Calif.-based company filed for an IPO Dec. 22. The firms underwriting the offering were Morgan Stanley, Jefferies & Co., Cowen & Co., ThinkEquity Partners and Merrill Lynch.