CyrusOne Posts Gains on First Day of Trading

Andrew Klips  |

CyrusOne Inc. (CONE) made its debut on the Nasdaq Global Select Market Friday morning as the latest in a line of initial public offerings that has been well-received initially.  CyrusOne, a company owned by telecom firm Cincinnati Bell Inc., on Thursday said its IPO would include 16.5 million shares at a price of $19.00 per share, above the high end of its proposed range of $16 to $18 per share.  At $19.00 per share, CyrusOne would be valued at $1.18 billion.

After the offering is completed, Cincinnait Bell will still own about 71.6 percent of Texas-based CyrusOne.

CyrusOne is an owner and renter of data centers, providing clients with equipment, bandwidth and space to send information across the Internet.  The company has structured itself as a Real Estate Investment Trust, or REIT, because of tax benefits related to rental income.  Shareholders like REITs because they are mandated to distribute a minimum of their profits to their shareholders via dividends.

Through its 24 data centers worldwide, the company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for approximately 500 customers, including more than nine of the Fortune 20 and over 100 of the Fortune 1000 companies.

To celebrate its new home on Nasdaq, the company is scheduled to be in Times Square in New York City to ring the opening bell on Tuesday, January 22.

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Morgan Stanley, BofA Merrill Lynch, Deutsche Bank Securities and Barclays are acting as joint-bookrunners for the initial public offering. Citigroup, KeyBanc Capital Markets, RBS and UBS Investment Bank are acting as co-managers.

Shares gapped ahead to open at $21 each on Friday and rose as high as $22.10, 16.32% above the IPO price.  By the closing bell, shares had cooled-off a bit to finish the first day at $21.20.

Also making its debut on Friday was Norwegian Cruise Line Holdings Ltd. (NCLH), the third largest cruise ship operator in North America.  The company offered 23.5 million shares at $19 each, but promptly shot ahead to open at $25.10 and rose as high as $25.49, 34.16% above the IPO price.  Shares closed the day at $24.79.

During the week of January 21, traders will be eyeing the IPOs of childcare services provider and early education center operator Bright Horizons Family Solutions LLC (BFAM) and LipoScience (LPDX), a provider of a LDL diagnostic test to for cardiovascular risks.  This is LipoSciences second try at going public after walking away from the initiative in June 2011.  LipoScience has set of price target between $13 and $15 per share for 5 million shares.

Bright Horizons intends to sell 10.1 million shares between $19 and $21, according to SEC filings.  The company used to be listed on the Nasdaq until it was acquired by Bain Capital in 2008.  In its return to the public, it will trade on the NYSE.

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