CommScope headed back to the public market Friday, but at a lower price that expected. And its shares generated little enthusiasm – or “pop.”
Some headlines captured the return of the Hickory-based company to the market:
- ” CommScope, Backed by Carlyle, Has a Rocky Debut,” concluded The New York Times
- “CommScope – No Appetite For This Debt-Loaded Offering” at Seeking Alpha
- “CommScope wavers after its IPO raises $576.9M” reported the Associated Press
Shares began trading Fridaywith a price of $15 – and there was very little pop. After climbing to $15.39, shares were below $15 90 minutes into the trading day.
They finished the day at $14.99.
CommScope priced the initial public offering on Thursday. The company picked the Nasdaq and is trading under the symbol “COMM.”
The firm said it expects to raise some $437.3 million from its share offering. Most of that – some $399 million – will be used to repay debt.
CommScope is selling 38.4 million shares and its parent firm The Carlyle Group is selling another 7.7 million shares.
The total value of the IPO had been expected to be valued at under some $570 million.
Shares had been expected to sell between $18 and $21, CommScope had said in a recent press release and SEC filing on Oct. 14.
CommScope and The Carlyle Group, one of the world’s largest private equity firms, took CommScope private in 2010.
The IPO was handled by JP Morgan, Deutsche Bank Securities and BofA Merrill Lynch.
Underwriters have a 30-day option to purchase nearly 5.8 million shares.
The IPO is at least the seventh by North Carolina-based companies this year, including one by Durham-based Quintiles that generated nearly $1 billion.