Telecom equipment maker Calix Inc. (CALX) launched its initial public offering on Wednesday, exceeding analysts’ and investors’ expectations in a sign that perhaps the tech IPO drought is near an end.
Calix, based in Petaluma, Calif., makes hardware and software that delivers Internet, phone and TV services through smaller providers. It competes with the likes of Huawei Technologies and Motorola Inc. (MOT) Late Tuesday, Calix sold 6.3 million shares for $13 apiece and raised $82.3 million. The company originally had planned to price its shares at $11 to $13 each.
By 1 p.m. on Wednesday, Calix shares were trading at $16.20.
Calix said it will use $25 million of the IPO’s net proceeds for R&D, sales and marketing, and general and administrative costs. Another $7 million will go toward capital expenditures.
The IPO’s underwriters included Goldman Sachs and Morgan Stanley.
Last August, Calix raised $100 million in new financing, in part to prepare for continued growth, the company said at the time. Executives hope to take advantage of the billions in broadband stimulus money that, with any luck, will start circulating through the economy soon. The company has said it’s uniquely positioned to help ILECs, CLECs, cable operators, municipalities and others carry out stimulus-funded projects.
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