The initial public offering of US data centre business CyrusOne has raised US$360m.
Its parent, local exchange carrier Cincinnati Bell, will hold on to 69% of the business after selling just shy of 19 million shares in its subsidiary for US$19 a…
The initial public offering of US data centre business CyrusOne has raised US$360m.
Its parent, local exchange carrier Cincinnati Bell, will hold on to 69% of the business after selling just shy of 19 million shares in its subsidiary for US$19 a piece.
The proceeds will all be retained by CyrusOne to fund future development and working capital requirements.
The shares priced high, above the range suggested earlier in January. The Ohio-based operator had said it expected CyrusOne shares to trade at US$16 and US$18.
Morgan Stanley, BofA Merrill Lynch, Deutsche Bank and acted as joint-bookrunners for the offering, while Citigroup, KeyBanc, RBS and UBS acted as co-managers.
The data centre venture has been trading on the Nasdaq since18 January.
CyrusOne operates 23 data centres in nine distinct markets, with the vast majority in the US although it does have outposts in London and Singapore.
It announced its intention to partially list in August and Cincinnati Bell said a portion of the proceeds from the IPO would be used to repay outstanding debts owed to it by CyrusOne.
CyrusOne will operate as a real estate investment trust (Reit), which 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.
