Whitley LLP Attorneys at Law
Call Today! 888.252.8277
Request Your Consultation
  • Home
  • Firm Overview
  • Attorney Profile
  • Securities Law
  • FAQ
  • Blog
  • Contact Us
  • Call Today
  • Email Us
  • Our Map
  • Menu
Blog 2013 January Texas data center provider nets $315.5 mln from IPO
Previous Post  |  Next Post

Texas data center provider nets $315.5 mln from IPO

Posted By Whitley LLP Attorneys || 24-Jan-2013

When the Texas-based data center provider CyrusOne decided to enter into the public market there was a lot to think about. How much of the company would be offered up to shareholders? What would the initial asking price be for each share of stock? Who would control ownership of a majority of the company after the public offering had been made?

After extensive discussions, CyrusOne Inc. had finally come up with a business plan and on January 17 the company entered the public market with relative success. Their IPO was for 16.5 million shares, priced at $19 per share, which quickly netted the company about $315.5 million. Trading on NASDAQ has helped further the company's plans to grow financially, not boasting a share price of more than $22 per share.

CyrusOne board members decided to keep a majority of ownership with its parent company, Cincinnati Bell Inc who had previously estimated their IPO between $16 and $18 per share.

Although a move in the public sector allows the company the chance to improve its financial condition, there are certain issues they may run into in the future. When a company goes public, they often times lose their freedom to act without a board. Also, shareholders tend to judge management in terms of profit which means a company may focus too much on the short-term profits instead of creating a long-term goal. Although it's likely that CyrusOne's attorneys foresaw these potential problems, in an ever changing economy, sometimes it's hard to predict the unpredictable.

Source: The Houston Business Journal, "CyrysOne prices IPO, will begin trading on the Nasdaq," Molly Ryan, Jan. 18, 2013

Categories: regulatory compliance, Tags: IPO, Texas-based company, initial public offering, shareholders

Share Post

Contact Whitley LLP Attorneys at Law

You Deserve Sound Business Guidance

Send My Message

Securities Law

How Can We Help You?

  • Alternatives for Raising Capital
  • Mergers & Acquisitions
  • Sale of Mid-Market Company Terms
  • Securities
  • Corporate Law
  • General Counsel
  • How to Start a Private Investment Fund
  • Company Spin-Offs
  • When to Go Public
  • How to Go Public
  • Home
  • Site Map
  • Privacy Policy
  • Contact Us
Whitley LLP Attorneys at Law

Start Today! 888.252.8277

Whitley LLP Attorneys at Law - Houston Business Lawyer
11757 Katy Freeway, Suite 1300, Houston, TX 77079
View Map

Toll Free (888) 252-8277
Local (281) 206-0434
Website: https://www.whitleylawgroup.com/
© 2019 All Rights Reserved.
Internet Marketing Experts The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.