Intermedia Delays Going Public, Cites ‘Adverse’ Market Conditions

Intermedia has postponed its plans for going public, citing “challenging” conditions for tech initial public offerings (IPOs).

Last month, Intermedia announced the terms of its IPO. By going public, it plans to raise $300 million by offering 12.2 million shares for between $23 and $26 apiece. That could make Intermedia worth $1.5 billion.

Expect the shares to trade on the Nasdaq under the symbol “INTM.”

Michael Gold is Intermedia’s CEO.

Intermedia’s Michael Gold

“Due to challenging current conditions in the market for initial public offerings, especially for technology companies, we have decided to postpone our planned initial public offering,” he said. “While we received strong interest and engagement from the broader institutional investor market, we are seeing adverse conditions in the current IPO market that we believe would limit the opportunity of our IPO at this time.”

The adverse conditions might not last long, Gold said. Intermedia will continue monitoring the market for “more stable and favorable IPO conditions.”

The company isn’t commenting further on its IPO. Intermedia provides a cloud-based communications and collaboration platform. Its network includes more than 7,000 channel partners. Moreover, a growing base of over 122,000 business customers use its platform.

Raul Castanon is senior research analyst with 451 Research, part of S&P Global Market Intelligence. He said going public could catapult Intermedia into the ranks of top competitors Cisco, RingCentral and 8×8.

According to Intermedia’s regulatory filing, it estimates the total addressable market for its UCaaS and business cloud applications (BCA) solutions to be $67 billion.

“The fast growth of our UCaaS solutions, with a total addressable market of $47 billion, is primarily driven by our partners using our solutions to upgrade their customers’ legacy communications systems, which are not designed to address the evolving work environment and need for connected, seamless and modern architectures,” the company said.