CyrusOne shares jump 15% in first-day trading
CyrusOne's (Nasdaq: CONE) shares were up almost 15 percent during its first day trading as a public company on the Nasdaq stock exchange on Friday. The data center provider's shares closed at $19 after rising to $22.10 at one point during the day.
However, its parent company Cincinnati Bell's (NYSE: CBB) shares were trading at $5.05, down 4 percent, on the New York Stock Exchange.
Earlier in the week, Cincinnati Bell said 16.5 million shares of CyrusOne would be priced between $16 and $18 each.
Jack Cassidy, president and CEO of Cincinnati Bell, said in a Cincinnati.com article that since the company will "continue to hold a majority stake in CyrusOne, Cincinnati Bell will continue to benefit from the growth of CyrusOne."
Cassidy added, "This transaction will also enable us to focus on driving growth in our Fioptics product suite as well as our fiber-based solutions for businesses."
Ever since Cincinnati Bell acquired CyrusOne in 2010, the unit has been a consistent growth engine for the service provider as its traditional landline phone service business has continued to decline.
CyrusOne has 24 data centers in major U.S., European and Asia Pacific cities including Austin, Chicago, Cincinnati, Dallas, Houston, London and Singapore. In Q3 2012, CyrusOne added 95,000 square feet of new data center space in Texas' DASH (Dallas-Austin-San Antonio-Houston) market.
While Cincinnati Bell has not announced when it will report Q4 2012 earnings, CyrusOne was a star performer in Q3 2012. Its revenues rose to $57 million, up $10 million, or 20 percent, year-over-year from Q3 2011, and the division's operating income of $11 million was comparable to the same period in 2011.
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