Maxcom Manages An IPO Cash Call

Despite a tough market Friday, Maxcom Telecommunications (NYSE: MXT) pulled off a successful IPO. The offering price came at the top of its $15.50-$17.50 price range and the shares are trading about $18.70. The company raised about $200 million.

Maxcom is a telecom services provider based in Mexico. From 2002 to 2006, the company’s voice lines went from 125,231 to 269,598. What’s more, the churn rate declined from 3% to 1.6% (which is always a good sign in the tough telecom space — and is an indication of strong customer service).

It also helps that Maxcom continues to innovate. For example, there are VOIP services and even Internet Protocol Television. Then gain, the company operates its own network as well as the proverbial “last mile” premise level infrastructure (which is certainly a powerful competitive advantage).

And the growth has been fairly strong. Last year, revenues came to $155.4 million, whereas revenues for the first half of 2007 have already reached $99.7 million. Although, the company is still losing money.

And it looks like the growth should continue for the long-haul. Mexico’s population is growing and so is its middle class. More importantly, the telecom market – such as for voice, data, mobile and so on – is underserved in terms of penetration rates.

Disclosure: none