Casa Systems Announces Potential Pricing for IPO

By Chris Lange Updated Jan 12, 5:48AM EST · Published Dec 4, 9:40AM EST

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Casa Systems Announces Potential Pricing for IPO — © Thinkstock

Casa Systems has registered an amended s-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering. The company expects to price its 8.4 million shares in the range of $15 to $17, with an overallotment option for an additional 1.26 million shares. At the maximum price, the entire offering is valued up to $164.22 million. The company intends to list its shares on the Nasdaq under the symbol CASA.

The underwriters for the offering are Morgan Stanley, Barclays, Raymond James, Stifel, Macquarie Capital, Northland Capital Markets and William Blair.

This company provides a suite of software-centric infrastructure solutions that allow cable service providers to deliver voice, video and data services over a single platform at multi-gigabit speeds. In addition, Casa Systems offers solutions for next-generation distributed and virtualized architectures in cable operator, fixed telecom and wireless networks.

Its solutions enable customers to cost-effectively and dynamically increase network speed, add bandwidth capacity and new services for consumers and enterprises, reduce network complexity and reduce operating and capital expenditures.

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In terms of finances, the firm described in the filing:

We have achieved significant growth and profitability. For the year ended December 31, 2015, we generated revenue of $272.5 million, net income of $67.9 million and adjusted EBITDA1 of $115.5 million, representing increases of 29.0%, 13.8% and 22.1%, respectively, from the corresponding amounts for the year ended December 31, 2014. For the year ended December 31, 2016, we generated revenue of $316.1 million, net income of $88.7 million and adjusted EBITDA of $129.1 million, representing increases of 16.0%, 30.5% and 11.7%, respectively, from the corresponding amounts for the year ended December 31, 2015. For the nine months ended September 30, 2017, we generated revenue of $233.6 million, net income of $59.6 million and adjusted EBITDA of $93.3 million, representing increases of 7.7%, 22.2% and 25.2%, respectively, from the corresponding amounts for the nine months ended September 30, 2016.

The company intends to use the net proceeds from this offering for working capital and general corporate purposes.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.