US regional telco Cincinnati Bell’s data centre subsidiary CyrusOne’s initial public offering has priced at US$19 per share.
That is above the pricing range suggested earlier this month, when the Ohio-based operator calculated it to be between US$16…
US regional telco Cincinnati Bell’s data centre subsidiary CyrusOne’s initial public offering has priced at US$19 per share.
That is above the pricing range suggested earlier this month, when the Ohio-based operator calculated it to be between US$16 and US$18.
The offering is for 16.5 million shares, and the underwriters have the option to purchase an additional 2,475,000 shares, equalling a value of up to US$360.5m for Cincinnati Bell, which will continue to control 72% of CyrusOne.
Morgan Stanley and BofA Merrill Lynch are bookrunners for the offering, while Deutsche Bank, Barclays, Citigroup, Keybanc Capital Markets, RBS and UBS are acting as co-managers.
CyrusOne is now trading on the Nasdaq Global Select Market under the symbol “CONE”.
CyrusOne owns 23 operating data centres in nine distinct markets, predominantly in the US although it has operations in London and Singapore as well.
Cincinnati Bell hat first looked at the possibility of floating CyrusOne in February last year. It announced its intention to partially list the data centre business in August and the telco said a portion of the proceeds from the IPO will be used to repay outstanding debts owed to it by CyrusOne.
When CyrusOne announced it would list, it said it intended to operate as a real estate investment trust (Reit), according to its SEC filing. Reits receive special tax considerations and typically offer investors high yields as they have to distribute a minimum of 90% of their taxable profits as dividends.
Cincinnati Bell originally said it expected to raise US$300m from the flotation and for the unit to be ready to list in the fourth quarter of 2012.
Cincinnati Bell primarily offers fixed-line and mobile services, but has also branched out into IPTV and payphones. It offers services in Ohio, Indiana and Kentucky and reported revenues of US$1.46bn for 2011; CyrusOne generated US$181.7m of that.
