US fibre network provider Zayo Group has launched its planned listing, offering 28.9 million shares at a price expected to be between US$21 and $24 per share.
Zayo is offering 11.1 million shares, while selling stockholders are placing 17.8 million…
US fibre network provider Zayo Group has launched its planned listing, offering 28.9 million shares at a price expected to be between US$21 and $24 per share.
Zayo is offering 11.1 million shares, while selling stockholders are placing 17.8 million shares to be listed on NYSE, the company said in a statement today.
This would allow the company to raise between US$607m and US$694m.
Proceeds from the offering will be used for general corporate purposes, which may include the redemption of certain outstanding debt, acquisitions, working capital, and capital expenditures.
Morgan Stanley, Barclays, and Goldman Sachs will act as lead joint bookrunning managers and representatives of the underwriters. RBC Capital Markets, Citigroup and SunTrust Robinson Humphrey will join as joint book-running managers.
Sponsor-backed Zayo first announced plans to go public in early July. At the time, the company said it was aiming to raise up to US$100m.
Media reports said back then that the company was expecting a valuation of 12x EBITDA or higher, which would correspond to a market capitalisation of approximately US$8bn, although some suggested that its valuation was more likely to be in the U$6bn to US$7bn range.
Since it was founded in 2007, the company has expanded via M&A, acquiring 30 businesses for a total investment value of US$3.7bn.
Zayo is owned by private equity firms including Battery Ventures, Charlesbank Capital Partners, Columbia Capital, GTCR, M/C Partners and Oak Investment Partners.
Based in Colorado, it controls a 77,000 mile fibre network and serves wireline and wireless operators, data centres, ISPs, high-bandwidth enterprises and government agencies in the US and Europe.
