BigBand IPO

Abstract:
BigBand IPO came out in March 2007 and this Initial Public Offering of BigBand Networks Inc. was able to raise a significant amount of capital worth $139 million. The company planned to use this capital raised through IPO for repaying its’ debt and for meeting the capital expenditure requirement working capital requirement.
BigBand IPO refers to the Initial Public Offering of BigBand Networks Inc. This BigBand IPO came out in March 2007 and was successful to raise substantial amount of capital.

BigBand Networks Inc., the company which sells softwares and network hardwares to different companies, offered 10.7 million shares in its’ Initial Public Offering.

Pricing of the Stocks in the BigBand IPO
In the stock market, there was expectations that the shares of BigBand would remain in the price band of $10 to $12 per share.

But, when the IPO opened the market forecasts were proved wrong. The 10.7 million share of BigBand was actually sold at the price of $13 per share. This enabled the company in raising $139 million through the Initial Public Offering.
It can be said that the stock placement of BigBand IPO was done in an efficient manner, as the stocks attracted a price level which was much higher than the price band that was expected in the time of IPO Filing.
Reason behind BigBand IPO
BigBand actually decided to come out with this Initial Public Offering in order to raise working capital for the company. The company also planned to use the raised capital for repaying debts and for meeting capital expenditures. It can be mentioned here, that just before the IPO declaration, BigBand recorded significantly high level of growth. The IPO declaration came in March 2007 and in 2006, the company touched the revenue level of $176.6 million.
Underwriters of IPO
In this Initial Public Offering of BigBand, Merrill Lynch & Co. and Morgan Stanley worked as underwriters. In the process of IPO deal, the BigBand Networks Inc. offered the underwriter companies the power of purchasing additional 1.6 million shares, in order to control the situation in case of over allotment. It should be mentioned here, that BigBand shares were listed as “BBND” in NASDAQ at the time of Initial Public Offering.

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Last Updated on : 30th July 2013