CommScope sets terms for IPO

14 October 2013 | Kavit Majithia

Equipment vendor CommScope has set terms for an IPO with an estimate valuation reported at $3.9 billion.

The value is the same when it was taken private in 2011 by Carlyle Group.

Both companies expect to offer approximately 38.5 million shares at $18 and $21 each, with the aim to raise over $800 million.

Carlyle expects to hold onto a 75% stake in CommScope after the offering.

CommScope manufactures cables for high-speed data networks and has changed ownership many times, until it went public in 1997.

It raised approximately $750 million through an IPO in August, and has reportedly used the investment to upgrade its equipment and feed the demand from service providers which are upgrading data networks.

Verizon, AT&T and Comcast are all part of CommScope’s portfolio, with the company’s operating income for the quarter estimated between $95 million and $105 million.