Cbeyond, the Voice over IP service provider targeting small to mid-sized businesses, today issued its expected IPO, offering common stock at $12 a share. The IPO is one of the few being issued by competitive service providers in the current market and could serve as an indication of Wall Street’s view of new VoIP opportunities.

Cbeyond, though still relatively small, has succeeded in addressing its targeted base and achieving steady growth and remarkable retention of 99% in its six-year history.

The competitive service provider, with 17,000 customers as of June, 2005, offers integrated voice, data and applications to SMEs in its home base of Atlanta, along with Chicago, Dallas-Fort Worth, Denver and Houston, with plans to expand. Proceeds from the stock sale will be used to fund that expansion, as well as to pay down debt, the company said.

The shares are listed on the Nasdaq National Market under the symbol "CBEY. Deutsche Bank Securities Inc. is the book-running manager and Raymond James & Associates, Inc., Thomas Weisel Partners LLC and ThinkEquity Partners LLC are co-managers of the IPO.