Internet access, TV provider Wildblue files U.S. IPO
By John Poirier
WASHINGTON, Oct 10 (Reuters) - Satellite-based Internet access and television provider Wildblue Communications Inc. filed with U.S. regulators to raise as much as $200 million in an initial public offering of its common stock.
The company, which filed a preliminary prospectus Friday with the Securities and Exchange Commission to reveal its IPO plan, said it hopes to offer customers affordable Internet access at speeds 25 times faster than a 56 kilobits-per-second dial-up modem connection.
It did not say how many shares it plans to offer, or the estimated price per share, but said it has applied to trade its shares on Nasdaq under the symbol ``WBLU'' (Nasdaq:WBLU - news).
More details of its IPO are expected in amended filings in the future.
Wildblue Communications plans to increase its service in the United States and Canada in addition to countries in Latin America once it launches a satellite, called WildBlue I, which may be sent into space in the first quarter of 2002.
WildBlue I is a Ka-band geostationary (GEO) satellite system able to provide high-speed or broadband Internet access directly to residential and small office/home office (SOHO), the company said.
Revenue will be generated from subscription fees the company says will be competitive with existing land and proposed satellite-based broadband services.
The 32 million U.S. households that lack land Internet access will be primary customer targets, the company said.
In addition, it said it will provide television services as part of an agreement with satellite television provider EchoStar Communications Corp. (NasdaqNM:DISH - news), which holds a 12.6 percent stake in Wildblue.
The money from the IPO will be used for working capital, general corporate purposes and capital expenditures, including satellites and ground infrastructure, the Denver-based firm said.
It also intends to hold on to future earnings to fund its development and said it does not see cash dividends in the near future.
No revenue has been generated since its inception in April 21, 1995, the prospectus showed. It posted net losses of $2.5 million in the six-month period ended June 30, compared with a loss of $3.1 million in the same period in 1999.
Donaldson, Lufkin & Jenrette is the sole underwriter managing the IPO, according to the SEC filing.
The $200 million figure cited in the filing was done merely to calculate the SEC registration fee, the company said. |
