Casa Systems, a US-based broadband software provider that counts telecommunications and cable service provider Liberty Global as an investor, has raised $78m in its initial public offering.
The company issued 6 million shares priced at $13.00 each on the Nasdaq Global Select Market. It floated below the IPO’s $15 to $17 range, despite the number of shares being cut from 8.4 million.
Founded in 2013, Casa produces software that helps cable, wireless and wireline broadband suppliers increase their bandwidth and expand the voice, video and data services they offer. It made $59.6m in income from $234m in revenue in the first nine months of 2017.
Liberty Global’s corporate venturing unit, Liberty Global Ventures, is an investor in Casa but has not disclosed when it provided the funding. It held a 6% stake that was diluted to 5.5% in the offering.
Growth equity firm Summit Partners, one of the investors that supplied $96.5m in funding to Casa in 2010, the year after it received $3.1m from unnamed backers, is its largest shareholder, and its stake was cut from 52.1% to 48.2%.
Dragonfly 2012 Irrevocable Trust, which is managed by Casa chairman and chief executive Jerry Guo and Lucy Xie, a senior vice-president at the company, had a 5.4% share that was reduced to 5%.
Morgan Stanley and Barclays Capital are joint book-running managers for the IPO while Raymond James & AssociatesStifel, Nicolaus & Company, Macquarie Capital, Northland Securities and William Blair & Company are co-managers.
Casa’s stock closed at $14.40 on Friday, its first day of trading, and it stands at $14.60 at time of publication with a market capitalisation of approximately $1.2bn.