Mavenir Systems – Today’s Other IPO

Mavenir Systems Logo
Mavenir Systems (MVNR) chose to go public on the same day as Twitter (TWTR). Let’s give them some attention too.

Today’s other IPO did not quite raise the ruckus like that certain other company.

In stark contrast to the Twitter IPO hoopla, Mavenir Systems went public today on the NYSE as well.  Mavenir went out on the road with a price range between $15 and $17.  However, they priced below the range at $10/share.

At this writing, MVNR appears to have closed down to $9.64, or about 3.6%.  The final number keeps fluctuating on my screen.

They did manage to raise about $44.5 million dollars.  This is net of underwriting commissions, expenses and proceeds to selling shareholders.

Mavenir is backed by Austin Ventures, Alloy Ventures and Cisco Systems.  None of these shareholders are selling.

In an odd move, only executive officers are selling:

  • Pardeep Kohli, President and CEO, sold 86,544 shares
  • Terry Hungle, CFO, sold 21,419 shares
  • Bahram Jalalizadeh, EVP of Global Sales and Business Development, sold 21,745 shares

Mavenir is an IT company that lets 2G and 3G mobile service providers have access to 4G LTE networks.  There is a great deal of legacy 2G and 3G devices still operating.  Considering the world is moving from desktop to mobile, Mavenir could likely tap a rich market.

However, it is a work in progress.  Revenues seem to be growing, from $49.5 million in 2011 to $73.8 million in 2012.  Losses seem to be shrinking, from $21.0 million in 2011 to $15.2 million in 2012.  In this respect, the metrics are moving in the right direction.

We’ll see if investors saw something else in Mavenir that sent its stock tumbling or whether it was simply a case of Twitter sucking all of the oxygen from the NYSE trading floor.

Note:  We have a small position in Cisco Systems at this writing.
I wonder if the Mavenir Systems guys got to meet Capt. Picard, who was on hand to ring the opening bell as Twitter also began trading on the NYSE today.

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