The underwriters of Zayo Group’s IPO have exercised their option to purchase additional shares in full, enabling the US fibre network provider to generate US$458m from the New York listing.
The offering priced below expectations at US$19 per share…
The underwriters of Zayo Group’s IPO have exercised their option to purchase additional shares in full, enabling the US fibre network provider to generate US$458m from the New York listing.
The offering priced below expectations at US$19 per share following an initial suggestion from the US fibre network provider that its stock would sell for between US$21 and US$24.
Since the shares started trading on 17 October, they have risen to US$22.34.
Zayo issued 16 million new shares and a further 8 million shares were sold by the company’s stockholders.
Morgan Stanley, Barclays, and Goldman Sachs acted as lead joint bookrunning managers and representatives of the underwriters. RBC Capital Markets, Citigroup and SunTrust Robinson Humphrey served as joint bookrunning managers.
Zayo controls an 81,000 mile fibre network and serves wireline and wireless operators, data centres, ISPs, high-bandwidth enterprises and government agencies in the US and Europe.
Its latest client is O2, which today announced it had contracted Zayo to provide and manage a fully resilient core fibre network.
The 15-year agreement will allow O2 to use Zayo’s 4,500 kilometres of fibre in the UK and switches the mobile operator from SDH and Ethernet-based managed services infrastructure to a dedicated fibre optic network which connects mobile switching sites across the network.
