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Casa Systems Shrinks IPO Size to 6M Shares at $13 Each

Casa Systems’s IPO has apparently had a run-in with Dr. Shrinker.

Casa Systems, a maker of cable access and wireless network gear and software, said it has reduced the opening price of its IPO to $13 per share and cut the number of shares being offered to 6 million.

Casa Systems, which begins trading today on Nasdaq under the “CASA” ticker, announced plans earlier this month to offer about 8.4 million shares at $15 to $17 each.

UPDATE: Shares in Casa rose $1.40 (10.77%) Friday, closing at $14.40 each.

RELATED: Casa Systems IPO to Raise Up to $164.22M

Under the current plan, Casa Systems aims to raise about $78 million, well off the $164.2 million originally envisioned.

Casa Systems has also granted underwriters a 30-day option to buy up to 900,000 additional shares of stock at the IPO price. It added that Summit Partners, the company’s largest stockholder, has interest in acquiring up to 250,000 shares in the offering, “but in no event an amount that would have the effect of Summit Partners being the beneficial owner of 50% or more of Casa’s outstanding shares following the offering.”

Company president and CEO Jerry Guo has also expressed in interest in purchasing 100,000 shares in the offering, set to close on Dec. 19, 2017.

Morgan Stanley & Co. and Barclays Capital Inc. are acting as joint book-running managers for the offering, with Raymond James & Associates, Stifel, Nicolaus & Company, Macquarie Capital (USA), Northland Securities, Inc. and William Blair & Company acting as co-managers.

Casa, which has been pairing its wired network infrastructure portfolio with wireless systems, competes with vendors that include Arris, Cisco Systems, Harmonic, Huawei, Vecima Networks, and Nokia, which recently acquired virtual CCAP startup Gainspeed.

RELATED: Nokia Closes Gainspeed Buy

Casa’s customers include Charter Communications (coming way primarily from Charter’s  acquisition of Time Warner Cable), Rogers Communications and Mediacom Communications in North America; Televisa/IZZI Mexico and Megacable Mexico; Claro Telmex Columbia; Liberty Global, Vodafone and DNA Oyj; and Jupiter Communications and Beijing Gehua CATV Networks in the Asia Pacific region.

Casa generated revenues of $233.6 million through the first nine months of 2017 (with $125.3 million from North American customers), up 7.7%, and net income of $59.6 million, up 22% versus the corresponding year-ago nine-month period.