NEW YORK, Feb 17 (Reuters) - Masergy Communications Inc, a virtual network services provider, scrapped its plan to go public on Thursday 'due to the current pricing environment for initial public offerings,' it said in a filing with U.S. regulators.
The Plano, Texas-based company was expected to sell 7.7 million shares for $12 to $14 each on Tuesday after the U.S. market closed. On Wednesday, an underwriter said the offering would be postponed. The stock was to be listed on the New York Stock Exchange under the symbol 'MSGY'.
Masergy, with customers in 51 countries, helps businesses secure access to corporate networks and allows remote access to networks through cloud computing services.
Masergy's two biggest shareholders -- private equity firm Meritage Funds and communications venture investor Centennial Ventures -- planned to sell more than a quarter of their shares in the IPO. No executive officers planned to sell shares.
Masergy moved from a net loss to net income in 2008, and reported net income of 38 cents per common share for the second half of 2010 on a diluted pro forma basis, up 15 percent from the year-ago period.
Underwriters for the offering were led by Bank of America Merrill Lynch and Deutsche Bank Securities.
(Reporting by Alina Selyukh; Editing by Richard Chang) Keywords: MASERGYCOMMUNICATIONS/IPO (alina.selyukh@thomsonreuters.com; +1 646 223 6152; Reuters Messaging: alina.selyukh.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Plano, Texas-based company was expected to sell 7.7 million shares for $12 to $14 each on Tuesday after the U.S. market closed. On Wednesday, an underwriter said the offering would be postponed. The stock was to be listed on the New York Stock Exchange under the symbol 'MSGY'.
Masergy, with customers in 51 countries, helps businesses secure access to corporate networks and allows remote access to networks through cloud computing services.
Masergy's two biggest shareholders -- private equity firm Meritage Funds and communications venture investor Centennial Ventures -- planned to sell more than a quarter of their shares in the IPO. No executive officers planned to sell shares.
Masergy moved from a net loss to net income in 2008, and reported net income of 38 cents per common share for the second half of 2010 on a diluted pro forma basis, up 15 percent from the year-ago period.
Underwriters for the offering were led by Bank of America Merrill Lynch and Deutsche Bank Securities.
(Reporting by Alina Selyukh; Editing by Richard Chang) Keywords: MASERGYCOMMUNICATIONS/IPO (alina.selyukh@thomsonreuters.com; +1 646 223 6152; Reuters Messaging: alina.selyukh.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.