German Broadband Network Provider QS's ADS Offering Priced At $24.64 Each
Dow Jones Online News, Wednesday, April 19, 2000 at 02:24
(Published on Tuesday, April 18, 2000 at 16:06)
NEW YORK -(Dow Jones)- An initial offering of 10.1 million American depository shares of
German broadband network provider QS Communications AG was priced at $24.64 each, below
expectations.
Each American depository share, or ADS, equals two ordinary shares.
The company (QSCG), which provides broadband networks in Germany, had expected the
ADSs to be offered between $25.20 and $31.50 each through underwriters led by Morgan Stanley
Dean Witter.
The big German telecoms company, which will trade on the Neuer Markt and Nasdaq, had
been expected to opt for a smart, but cut-rate pricing strategy, despite the high demand reflected by
gray market activity.
In its listing prospectus, QS also acknowledges volatile stock prices are one of the risks it
faces after listing. The market for telecom shares like QS and other start-ups has experienced large
fluctuations in price and trading volumes in the past, which often failed to correspond to a company's
operating performance, QS warns.
QS, is the first German company to offer high-speed SDSL (Symmetric Digital Subscriber Line)
access - the broadband technology for accessing the Internet and the follow-on from the original ISDN
line. |
