Mavenir open RAN company drops $300m IPO in ‘volatile market’
Mavenir, the open RAN specialist that in September bought UK small-cell company ip.access, has withdrawn its plan to raise US$300 million on the US Nasdaq market.
The company had been due to float its shares last week, but then reduced the size of the offer, and on Friday cancelled it altogether.
CFO Terry Hungle (pictured) told the Securities and Exchange Commission (SEC): “The company has determined not to proceed with the initial public offering contemplated by the registration statement at this time.” He did not give reasons in the letter.
In the initial public offering (IPO), Mavenir was originally due to sell 13.6 million shares at $20-$24 each. But last week it first cut the planned sale to 12.5 million at the same price – reducing the maximum funds available from $326 million to $300 million – before dropping the idea altogether.
In a press statement, Mavenir said: “The company has decided to postpone its initial public offering, which was announced on October 6, 2020, amid market volatility. The company will reassess the market conditions in the coming months and will keep the market informed.”
Mavenir calls itself “the industry’s only end-to-end, cloud-native network software and solutions/systems integration provider for 4G and 5G, focused on accelerating software network transformation” for mobile telcos.
The ip.access acquisition was a relatively small deal, as the Cambridge-based company had sales of only £9.3 million in the year to March 2020, but Mavenir sees the deal as part of its expansion as the mobile industry moves to 5G.
Pardeep Kohli, Mavenir’s president and CEO, said in September: “Operators are looking to transform their 2G/3G networks as they migrate to 4G and 5G. We expect to provide a seamless, multi radio access technology single RAN offering for those operators that allows them to have the benefits of advanced radio solutions across all layers.”
The CFO has asked the SEC to retain all fees connected with the IPO registration statement “to be credited for future use”.