Networking technology company Cyan posted flat first-day performance in its Thursday IPO. But the offering still stands to deliver moderately positive returns for venture backers, including Norwest Venture Partners and Azure Capital.
The Petaluma, Calif.-based company priced 8 million shares in the offering at $11 each, the mid-point of its planned price range, giving it a market valuation of about $490 million. The optical network equipment supplier recovered early losses on its heavily traded market debut to close near the offering price.
Prior to going public, Cyan raised about $98 million in venture funding from at least five venture firms. Currently, the largest stakeholders are Norwest Venture Partners (which had a 24.59% post-IPO stake, currently valued around $121 million) and Azure Capital (13.5% stake, valued around $67 million).
Other venture shareholders include Tenaya Capital (7.4% stake, valued around $36 million), Focus Ventures (5.6% stake, valued around $27 million) and Meritech Capital Partners (5.5% stake, valued around $27 million).
Cyan (NYSE: CYNI), founded in 2006, offers software-defined network (SDNs) services that allow change of networks and data centers, avoiding upgrades to expensive and proprietary hardware. The potential of the nascent SDN market has attracted big names, with VMware Inc acquiring network virtualization firm Nicira for $1.05 billion last year.
Cyan posted a net loss of $16.6 million on revenue of $95.9 million in 2012. The company is yet to report a profit.
Reuters contributed to this report.
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