Billionaire Patrick Drahi’s Altice USA Inc. rose in its trading debut after raising $1.9 billion in the second-biggest U.S. initial public offering of the year.
The stock opened at $31.60 and climbed as much as 6.3 percent to $31.89 at 10:19 a.m. in New York. Altice USA and some existing shareholders sold 63.9 million shares for $30 apiece, within the marketed price range of $27 to $31 each.
It also is the biggest U.S.-listed telecom IPO in roughly 17 years, according to data provider Dealogic, when the tech boom ushered in a wave of cable and wireless operators, The Wall Street Journal reported.
The company increased the size of the deal Wednesday afternoon, as Canada Pension Plan Investment Board and BC Partners boosted the number of shares they planned to sell in the offering, according to a filing.
The IPO comes exactly one year after Altice USA was formed when its parent company, Altice NV, closed the acquisition of Cablevision Systems Corp. That business was combined with Suddenlink, which Altice bought in 2015, to create the fourth-largest U.S. cable provider.
Altice USA’s IPO is the second-biggest of the year in the U.S., behind Snap Inc.’s $3.9 billion deal that includes an overalottment to underwriters, according to data compiled by Bloomberg that excludes real estate investment trusts, special purpose vehicles and funds.
The company reported 4.9 million customers in 21 states at the end of March, according to its latest SEC filing. Accounting for the Cablevision acquisition, Altice USA posted a net loss of $721.6 million in 2016 on revenue of $9.2 billion.
JPMorgan Chase & Co., Morgan Stanley, Citigroup Inc. and Goldman Sachs Group Inc. led the IPO, according to the filing. The stock trades on the New York Stock Exchange under the ticker ATUS.