IPO values CommScope at $2.86 billion
Company raises $578 million
Carlyle stake valued at $2.23 billion
The company raised about $578 million after its IPO was priced at $15 per share, well below its expected price range of $18-$21.
Of the 38.5 million shares offered, CommScope sold 30.8 million, with Carlyle selling the rest.
The private equity firm will continue to own 78 percent of the company it acquired three years ago for $3 billion, excluding debt.
Carlyle’s stake is valued at about $2.23 billion at the highest price of $15.42.
CommScope’s cables are used by major telecommunications providers such as AT&T Inc, Verizon Communications Inc and Comcast Corp.
A recovery in spending by telecom service providers has created a renewed interest in telecom gear makers.
CommScope reported revenue of about $1.75 billion for the six months ended June 30.
The company, which traces its roots to Superior Cable Corp set up in 1953, competes with Amphenol Corp, Emerson Electric Co and Huawei Technologies Co.
CommScope is the second company to be taken public by Carlyle this year after industrial distribution company HD Supply Holdings Inc in June.
A strong stock market and low interest rates have prompted many private equity firms to take their portfolio companies public.
The Hickory, North Carolina-based company’s shares opened at $15 and were up at $15.09 in morning trade. About 7.7 million shares changed hands on the Nasdaq by 10:15 AM ET.
JPMorgan Chase & Co, Bank of America Merrill Lynch and Deutsche Bank Securities were the lead underwriters.
Avik Das is a reporter for Reuters News in Bangalore