Andover, Massachusetts-based Casa Systems had a tough time pulling off its IPO this week.
The broadband solutions company wanted to debut Thursday, but pushed its launch back to Friday, likely because of weak initial demand. Casa had planned to sell 8.4 million shares, but reduced it to 6 million following the investor roadshow (where companies pitch institutional investors and other IPO buyers).
The IPO was slated to price between $15 to $17 per share, but it priced at $13, raising $78 million versus the $134.4 million it would have raised at the midpoint of the range at the original deal size. But on a better note, the stock bounced up almost 11 percent from its $13 IPO price, closing the day at $14.40.
Here’s how Casa describes its business in its IPO filing: “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 company brought in $316.1 million in revenue for 2016. This compares to $272.5 million for 2015. Casa posted a profit last year of $88.9 million, up from $67.9 million in 2015.
In the “risk factors” section of the prospectus, Casa warned that it is heavily reliant on clients like Time Warner Cable and Liberty Global.
Founded in 2003, the company had received a disclosed $100 million in venture capital, primarily from Summit Partners, which owned a sizeable 52.1 percent of Casa Systems prior to the IPO. Liberty Global Ventures owned 6 percent.