North Bay gets a share of IPO activity

NORTH BAY -- Notable North Bay companies have raised more than $230 million through forays into the public stock market in recent months, with Petaluma's Cyan (NYSE: CYNI) the latest to complete an initial public offering.

The period is one of the most active for North Bay IPOs since the days when Sonoma County was a known hub for tech ventures and carried the moniker of "Telecom Valley," according to regional leaders in economic development and analysis.

Those leaders noted that the current regional business climate is quite different from the early years of the new millennium. Yet as job and economic growth continues in the North Bay, the tens of millions of dollars flowing to some regional employers could mean additional fuel for the recovering economy.

[caption id="attachment_72276" align="alignleft" width="200"] Ben Stone[/caption]

"It's an indication that we have companies that are ready to grow," said Ben Stone, director of the Sonoma County Economic Development Board. "Everybody was doing IPOs a few years ago. That kind of died off. As the economy improves, we'd expect to see more of these."

Cyan, which develops equipment to optimize networks for Internet service providers and large data centers, raised $88 million by offering 8 million shares to investors on May 9. It was an upward revision from the $75 million that the company first expected to raise, and its stock ended the day trading up 14 cents from the initial $11 per share, according to company filings with the Securities and Exchange Commission.

The funding, according to the company's filing, will be used as working capital and to finance possible acquisitions. Cyan also announced plans to hire additional marketing and engineering staff this year, adding to a current total of 219 employees. The company had 29 employees at the end of 2008.

Revenue was $95.9 million in 2012, up from $40.4 million in 2011 and $23.5 million in 2010, according to the filing.

Menawhile, the formerly named Corte Madera-based Restoration Hardware returned to public markets under the new brand "RH" in November 2012. RH (NYSE: RH), a luxury home furnishing retailer dealer that is also expanding into other retail, raised $142.5 million in its new IPO, with shares up 30 percent in the first day of trading. Proceeds from the IPO were planned to pay down a line of credit with Bank of America, according to a company filing.


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