Cyan's IPO opens under price at $10.05; hopes to raise $110 million

Cyan, an emerging software-defined networking (SDN) and packet-optical transport platform (P-OTP) vendor, saw its initial public offer of 8 million shares of common stock, priced at $11 per share, open at $10.05 this morning on the New York Stock Exchange.

The startup is trading under the symbol CYNI. While it hopes to raise $110 million from its IPO, the opening share price values the company at a respectable $448 million.

While Cyan is still a relatively young company, it has already gained traction in a number of large Tier 1 telcos, including CenturyLink (NYSE: CTL), which is transitioning its optical backbone network to support higher speed optical and Ethernet services.

CenturyLink is using Cyan's Z-Series P-OTP to deliver connection-oriented Ethernet (COE) services over optical fiber to the schools throughout Monroe, La.

Cyan is selling all of the shares in the offering, while the underwriters have been granted a 30-day option to purchase up to an additional 1.2 million shares of common stock from Cyan at the initial public offering price.

Goldman, Sachs & Co. and J.P. Morgan Securities LLC are acting as lead joint book-running managers for the offering, while Jefferies LLC is acting as a book-running manager, and Pacific Crest Securities LLC is acting as a co-manager.

This is the third startup company that Cyan's president co-founder Michael Hatfield has been involved in that has gone public. Before Cyan, he co-founded Calix (NYSE: CALX), which went public in 2010. Earlier, he served as an early team member and vice-president of marketing for Advanced Fibre Communications (AFC), which became a publicly traded company and was later purchased by Tellabs (Nasdaq: TLAB).

Cyan's shares were trading at $10.66, down 0.34, or 3.09 percent in Thursday morning trading on the NYSE.

For more:
- Reuters has this article
- see the release

Download our new eBook: Putting the Spotlight on Software Defined Networks

Special report: The 10 hottest wireline technologies in 2013

Related articles:
MEF certifies 20 vendors under CE 2.0 specification
Cyan brings its P-OTS, SDN expertise to Minnesota's Northeast Service Cooperative
Cyan names telecom industry veteran Mark Floyd as CEO
Cyan makes another software defined move with its EthernetFLEX application

Suggested Articles

In an era of rampant "fake news" allegations, Verizon is implementing a blockchain-verified record of changes to its news releases.

Add Charter to the list of service providers that are racking up substantial broadband subscriber gains in their recent earnings reports.

Amazon Web Services reported $11.6 billion in Q3 revenue, which was an increase of almost 29% from the same quarter a year ago.