The logo of cable and mobile telecoms company Altice Group is seen during a news conference in ParisThomson ReutersAltice USA opened at $31.60 a share, up 5.3% from its initial public offering price of $30.
The Bethpage, NY-based company now plans to raise $1.9 billion by offering 63.9 million shares (81% insider) at a price range of $27 to $31. SNAP, +0.52% raised $3.9 billion in its March debut. The deal values Altice USA at more than $20 billion.
Altice is the second cable IPO this year.
Now the fourth-leading US cable operator, Altice USA has clearly stated its intentions to acquire more US cable companies. The company then issued a statement on Wednesday advising that it was increasing the size of the IPO due to the fact that Canada Pension Plan Investment Board and BC Partners had ramped up the number of shares they were offering.More news: Steve Scalise Making 'Good Progress' After Shooting, Hospital Says
Underwriters have a 30-day greenshoe option to buy up to 7,781,110 additional shares.
Following the IPO, 75.2 percent of the company's shares will be held by its parent, Altice NV, which translates to 98.5 percent of the voting power. In a sign of solid demand for the IPO, Altice and its selling stakeholders sold more shares than anticipated.
Altice USA's IPO is viewed as a means for founder, Franco-Israeli media mogul Patrick Drahi, to expand his burgeoning US cable empire by giving the company public stock it can then use as currency for new acquisitions. The Reuters report suggested that Draghi could use the publicly traded shares of the us company as currency for funding future acquisitions.