Bandwidth IPO Priced At $20, Will Begin Trading Friday Morning


Bandwidth Inc., a Raleigh-based telecommunications company, priced its IPO at $20 per share and will begin trading on the NASDAQ on Friday morning when the market opens.

The company sold 4 million shares at that price, which is at the low end of its $20 to $22 range, raising $80 million.

The company’s stock will be traded under the ticker BAND.

Underwriters for the offering are Morgan Stanley & Co. LLC, KeyBanc Capital Markets Inc., Robert W. Baird & Co., Canaccord Genuity Inc. and JMP Securities LLC.

The underwriters can purchase an additional 600,000 shares to sell to investors in the next 30 days.

“Our Bandwidth Communications Platform empowers enterprises to create and scale voice or text communications services across any application and device,” the company stated in its initial Form S-1, which companies are required to file before going public. “Our software platform and IP voice network enable our enterprise customers to rapidly develop and deploy real-time and mission-critical, software-powered communications solutions.”

The company was formed in 1999 as a home-office start up and grew to employ over 300 people. In 2009 the company reported revenues of $87 million.

Bandwidth is a telecommunications company that offers a full suite of voice, messaging and 9-1-1 APIs. Companies such as ZipRecruiter, Cisco and Dialpad all use Bandwidth’s technology.

Bandwidth prides itself as the only company in its industry that owns both its programming interface and its own Competitive Local Exchange Carrier network. Without such characteristics — the company notes on its website — the quality, support, scalability and cost are hindered.

CEO David Morken, who co-founded Bandwidth with director Henry Kaestner, completed his undergraduate education at Oral Roberts University before receiving his law degree from the University of Notre Dame.

He later joined the Marine Corps as a judge advocate and headquarters company commander before the conception of Bandwidth in 1999.

The company’s headquarters are on Centennial Campus at NC State University in Raleigh.

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