By Ben Kolada
CyrusOne (CONE), the colocation bull that has now changed hands three times since 2007, debuted on the Nasdaq today with a valuation topping $1 billion. The fast-growing company was spun off of Cincinnati Bell, but is still majority owned (72%) by the regional telco. Shares popped during early trading, continuing the company's history of creating considerable wealth for each of its owners.
The datacenter company, which is structured as a real estate investment trust, sold 16.5 million shares at $19 per share, higher than its previously guided $16-$18 range. The IPO raised a total of $313.5 million, though underwriters have an option to sell an additional 2.5 million shares. Shares jumped approximately 10% when they hit the Nasdaq and held the gains through midday trading. CyrusOne currently sports a market cap of about $1.3 billion.
CyrusOne operates 24 facilities, primarily in the Ohio and Texas markets. The company offers colocation services aimed at enterprise-class customers requiring highly available facilities, engineered for dense power and reliability. Morgan Stanley and Bank of America Merrill Lynch were joint bookrunners for its IPO.
This is the third time shares of CyrusOne have traded hands since 2007. And in each transaction, its value has steadily climbed, creating considerable wealth for each of its owners.
Here's a look at CyrusOne's rising valuation:
Source: The 451 M&A KnowledgeBase.