This week, just one venture-backed offering, IP telephony provider ShoreTel, made it to market. But it was a big one. The Sunnyvale, Calif. company priced its 7.9 million share offering at $9.50 a share, the midpoint of the its anticipated range. Shares surged 28% to close at $12.15 in first-day trading Tuesday. The stock was up another 5% on Thursday.
VC firms, which poured more than $110 million into ShoreTel since 1997, stand poised to reap respectable ROI should share prices hold up until lockup periods expire. Venture investors with the largest stakes in ShoreTel include Crosspoint Venture Partners (9.3 million shares, valued at around $118 million); Foundation Capital (6.8 million shares, valued at $86 million); Lehman Brothers Venture Partners (7.6 million shares, valued at $97 million); and J.P. Morgan Direct Venture Capital (1.8 million shares, valued at $23 million).
The ShoreTel offering had originally been slated for the last week in June. That plan was marred last week when Kanata, Ontario-based Mitel, a rival IP communcations provider, filed a lawsuit against ShoreTel, alleging infringement of four patents.