Zayo’s IPO now valued at up to $800 million

BOULDER – Broadband infrastructure provider Zayo Group Holdings Inc.’s initial public offering could be worth up to $800 million, according to a new filing with the U.S. Securities and Exchange Commission. Last July, the company said it planned to raise roughly $100 million.

In the Monday morning filing, the Boulder-based company noted that it expects to sell up to 33.2 million shares at $21 to $24 per share. Zayo Group Holdings will sell 11.1 million of those. Selling stockholders are selling 17.8 million shares. Underwriters would also have the option to purchase an additional 4.3 million shares from the selling stockholders.

At the high end, and assuming underwriters pick up all of the shares for which they have an option, the IPO could be worth nearly $800 million. The mid-range of the share price, $22.50, would bring in up to $650 million.

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The filing notes that the company would not receive proceeds from the shares offered by selling stockholders. But even with the 11.1 million shares offered by the company, the IPO could bring in up to $266 million

Zayo’s stock will be traded on the New York Stock Exchange under the ticker symbol ZAYO. Underwriters for the sale include Morgan Stanley, Barclays, and Goldman, Sachs & Co., among several others, according to the filing.

In July, when the company first filed for the IPO, Zayo said it would raise up to $100 million. But the number of shares and expected share price weren’t disclosed at that time.

Zayo has been growing rapidly since its founding in 2007, acquiring more than 30 companies. The purchase of AboveNet in 2012 roughly doubled the size of Zayo at the time.

Revenue for Zayo’s fiscal year that ended June 30 topped $1.1 billion, though the company also posted a loss for the year of $180.5 million.

The company provides metro, regional and long-haul fiber optic networks, as well as data center services. Founded by former Level 3 Communications executives Dan Caruso and John Scarano, Zayo’s network connects nearly 15,000 buildings and more than 500 data centers.

The company is backed by private equity and venture capital firms including GTCR LLC, Oak Investment Partners, M/C Partners, Columbia Capital and Charlesbank Capital Partners.