Get ready to be WOWed with $400 million IPO
Entertainment media is one market that will never die off. Companies that operate in this bracket along with those that operate telecommunications market will probably still be profitable years to come. The market itself is big, but numerous companies operate in it. Therefore, each telecommunication firm has a lot of competition even before it starts operating.
WideOpenWest LLC “WOW!” is a cable channel provider that understands the risk of operating in this bracket all too well. The company is based in Englewood, Colorado and caters to residential and commercial consumers. WOW has been in operation for over fifteen years and is said to be the sixth largest cable channel operator in the US, coming after major brands like the 21st Century Fox Network and MSNBC. The company serves multiple regions from Chicago to Detroit to other South-western US markets.
The company has been a long time in the making. WOW has over 3,000 employees who provide services to over 3,000 homes in the US. These services include phone connection services, data connection services, and television cable services. For the phone provisions, WOW allows its customers to make both local and international calls. WOW users also get to surf the net at extremely fast internet speeds for an affordable cost. People who use WOW furthermore get access to basic and premium digital cable which allows them to access high-definition TV channels and other ultra TV products.
According to company CEO Steven Cochran, the WOW IPO has been a long time in the making. And if the company’s financials are anything to go by, Cochran may be right. WOW made $1.24 billion in sales revenue in 2016. The figure is a good indicator of fiscal performance for investors, especially since it indicates a rise in sales revenue for WOW when compared with the $1.22 billion from 2015. WOW’s net income also improved over the past two years. In the twelve months that ended December 31st, 2015, the Englewood firm reported $4.8 million in net income which multiplied to $31.9 million in 2016. Similarly, Wow made a turnaround in gross margins from a net loss of $48.7 million in 2015 to a net profit of $26.3 million in 2016.
WOW intends to capitalize on these good figures by launching into the stock market in the week of May 22nd, 2017. The firm made the announcement on Monday that it would list on the NYSE under the ticker label WOW. WOW added that it would be selling 19 million of its common stock within the $20 to $22 price range. At the midpoint, WOW stands to raise $400 million from the issuance and end up with a market cap of $1.8 billion. If the underwriters participating in the deal exercise their overallotment option, WOW could get up to $750 million in proceeds from the IPO.
The lead managers from the IPO will be UBS Investment Bank, Credit Suisse, and RBC Markets Capital. SunTrust Robinson Humphrey, Macquarie Capital, and Evercore ISI will act as the co-managers.