WideOpenWest Inc. (NYSE: WOW) entered the market quietly on Thursday in its initial public offering (IPO). The company priced its 18.24 million shares at $17 per share, but the stock actually entered the market slightly below this level.
The underwriters for the offering are UBS Investment Bank, Credit Suisse, RBC Capital Markets, SunTrust Robinson Humphrey, Evercore ISI, Macquarie Capital, LionTree and Raymond James. They have an overallotment option to purchase up to 2.74 million shares.
This is the sixth largest cable operator in the United States, as ranked by number of customers on December 31, 2016. The company provides high-speed data (HSD), cable television (Video), voice over IP-based telephony (Telephony) and business-class services to a service area that includes approximately 3.0 million homes and businesses.
The services are delivered across 19 markets via its advanced hybrid fiber-coaxial cable network. The footprint covers over 300 communities in the states of Alabama, Florida, Georgia, Illinois, Indiana, Maryland, Michigan, Ohio, South Carolina and Tennessee. Led by a robust HSD offering, its products are available either as a bundle or as an individual service to residential and business services customers. As of March 31, 780,100 customers subscribed to its services.
At the $17 pricing, the entire offering was valued up to $356.5 million. The company intends to use the proceeds from this offering to repay its indebtedness, with the remainder going to pay for working capital and general corporate purposes.
With just three hours left in Thursday’s trading session, about 6.5 million shares have moved on the day, shares are holding at $16.54. The stock has traded within the range of $15.44 to $17.20.