Juniper Networks-backed software support company Cyan raised $88m in its initial public offering.
The California-based company priced 8 million shares offered at $11 each, the mid-point of its planned price range, on the New York Stock Exchange, the company said in a Securities and Exchange Commission filing. Its shares closed on Friday at $11.11 per share, giving it a market capitalisation of $490m.
The company, which provides a range of software support systems involving packet-optical transport, has raised about $97.5m in corporate and venture capital funding since it was founded in 2006. Its main shareholders prior to the flotation were Norwest Venture Partners (29.9% pre-IPO stake), Azure Capital Partners (16.5%), Tenaya Capital (9.1%), Focus Ventures (6.8%) and Meritech Capital Partners (6.7%). Other investors include IT and computer networking company, Juniper Networks, and the Telecommunications Development Fund.
The company’s growth in recent years has been impressive with revenue more than quadrupling to $96m in 2012, when it posted a net loss of almost $117m. It had a net loss of $9.4m on revenue of $26.3m in the first quarter of this year, according to financial reports.
Goldman Sachs and JP Morgan were lead joint book-running managers for the offering. Jefferies acted as a book-running manager and Pacific Crest Securities also acted as a co-manager.