UPDATE 1-BigBand IPO raises $139 mln, above range
(adds market capitalization, details)
NEW YORK, March 14 (Reuters) - BigBand Networks Inc., which sells network hardware and software that allows companies to offer video, voice and data services, on Wednesday raised $139 million with an initial public offering that was priced above a forecast range.
The 10.7 million share offering was sold for $13 per share, compared with the forecast of $10 to $12, according to an underwriter.
The offering price gives the company an initial market capitalization of almost $743 million.
Based in Redwood City, California, the company sold 7.5 million shares while stockholders offered an additional 3.2 million shares. The company will not receive proceeds from selling stockholders.
The company plans to use net proceeds from the offering to repay debt, for working capital, capital expenditures and other general corporate purposes, the company said in an amended registration statement with the U.S. Securities and Exchange Commission.
BigBand sells hardware and software that allows cable television operators and telecom companies to offer voice, data and enhanced video offerings, commonly referred to as "triple-play" services, according to the filing.
Customers include Comcast Corp. (CMCSA.O), Cablevision Systems Corp. (CVC.N), Time Warner Cable Inc. (TWC.N), and Verizon Communications (VZ.N).
BigBand sells products and services to six of the 10 largest service providers in the United States, according to the SEC filing.
The company also turned a profit in 2006, earning almost $8.9 million, after losing $25.5 million the previous year. Net revenues increased 80.3 percent to $176.6 million for the year ended December 31, 2006 from $98 million in 2005, according to the filing.
BigBand operates in a competitive sector with large players, including Cisco Systems Inc. (CSCO.O) and Motorola Inc. (MOT.N).
Led by Morgan Stanley and Merrill Lynch & Co., underwriters have the option to purchase an additional 1.6 million shares to cover overallotments, according to an underwriter.
BigBand's stock has been approved for listing on the Nasdaq under the symbol "BBND." (BBND.O)
