Triton PCS shares double after IPO
NEW YORK, Oct 28 (Reuters) - Investors scooped up shares of Triton PCS Holdings Inc. (NasdaqSC:TPCS - news) on Thursday as the wireless personal communications services provider made its stock market debut and doubled in price.
The shares were up 19 at 37 in afternoon trade on the Nasdaq stock market.
The company, which provides wireless personal communication services (PCS) in the southeastern United States, raised about $180 million in the IPO. It priced 10 million shares above its expected range.
Morgan Stanley Dean Witter was the lead manager on the deal. The 10 million shares represent a 17 percent stake in the Malvern, Pa.-based company.
``PCS providers are racking up big subscriber gains. The wireless industry is growing fast, but PCS is growing even faster,' said Adam Zawel, an analyst at Yankee Group.
Analysts said one of Triton's most competitive advantages was its strategic alliance with AT&T Corp. (NYSE:T - news), its largest equity sponsor. Under the alliance, AT&T contributes PCS licenses to Triton in exchange for equity.
AirGate PCS Inc. (NasdaqNM:PCSA - news), a competitor, debuted in late September at $17 a share. It was at 46-3/4 Thursday afternoon.
Analysts said Triton was a bit ahead of AirGate. ``Triton has a slightly larger operating footprint; they have subscribers and their network is on. AirGate will flip the switch for their networks later this year,' said Eric Weinstein, an analyst at Donaldson, Lufkin & Jenrette.
For the six months ended June 30, Triton posted a net loss of $68.9 million on revenues of $38.2 million.
``There are not many ways to play wireless, and what is coming out is garnering premiums because it offers an alternative investment opportunity,' Weinstein said.
As prices have come down, wireless communications have gained momentum as more phone traffic has shifted from wireline phones. PCS is especially popular because it can handle new services such as wireless data and Internet access. Also, it is seen as having clearer and stronger signs than analog. |
