Is IDTC all hype since they also mention competitors in a news release???
IPVC is for real!!
Net2Phone announces terms of its IPO
June 28, 1999 12:37 PM
WASHINGTON, June 28 (Reuters) - Net2Phone Inc., whose Internet telephony services allow users to make low-cost telephone calls over the web, said Monday it plans an initial public offering of 4.8 million common shares.
The stock may be priced between $10 and $12 per share and trade on Nasdaq under the symbol NTOP, beginning in late July.
Net2Phone disclosed the terms of the IPO in an amended filing with the Securities and Exchange Commission, which had more details than its original May 18 filing.
If there is huge demand for the stock, then the IPO underwriters -- Hambrecht & Quist, BT Alex. Brown and Bear Stearns -- have an option to buy 720,000 more shares from the company.
At Net2Phone's request, the underwriters plan to reserve 300,000 shares for the National Broadcasting Co. (NBC), the television network unit of General Electric Co. GE ,which holds 5.5 percent of Net2Phone.
Other major shareholders include telecommunications provider IDT Corp. IDTC with 66.2 percent; Japanese software company Softbank Corp. , holding 11 percent; and America Online Inc. AOL , with 5.5 percent.
Net2Phone plans to use the net proceeds from the offering to repay IDT $7 million on an outstanding note and $1.5 million to NBC for television advertising.
The company, headquartered in Hackensack, N.J., said its customers often pay substantially less for long distance calls than they would using traditional long distance networks owned by AT&T Corp. T , Sprint Corp. FON and MCI WorldCom Inc. WCOM .
It said, however, that it is neither a local telephone company nor a registered local exchange carrier and that its network covers only portions of the United States. This means that some domestic and all international calls made by its customers must be carried, at least in part, over leased transmission facilities.
Some of the facilities are owned by current and potential Net2Phone competitors, including AT&T, MCI Worldcom and Frontier Corp. FRO , the filing said.
Net2Phone said it also leases facilities from local exchange carriers, such as the regional Bell operating companies.
It added that its network does not extend to homes or businesses, so all calls made by its customers must be routed through a local phone company to reach its network and, ultimately, to reach their final destinations.
investor.msn.com
|
