CFLO sets terms:
biz.yahoo.com
Wednesday November 3, 11:49 am Eastern Time
CacheFlow sets IPO at 5 mln shares, $11-$13/share
WASHINGTON, Nov 3 (Reuters) - CacheFlow Inc. set its initial public offering at 5 million shares at a projected price range of $11-$13 per share, the seller of Internet caching appliances said Wednesday in a filing with the Securities and Exchange Commission.
The Sunnyvale, Calif.-based company plans to use estimated net proceeds of $54.1 million for working capital and general corporate purposes.
CacheFlow, which has applied to trade the shares on Nasdaq under the symbol ``CFLO' (NasdaqSC:CFLO - news), will have about 32.6 million shares outstanding after the offering.
If there is heavy demand for the stock, the underwriters -- Morgan Stanley Dean Witter, Credit Suisse First Boston and Dain Rauscher Wessels -- will have an option to buy 750,000 more shares.
The company's products speed up and manage the flow of information over the Internet through a process called Internet caching. An Internet cache stores information physically closer to users, thereby eliminating the need to retrieve the information each time, CacheFlow said.
``Our Internet caching appliances enable our Internet service provider and enterprise customers to improve web response times, deliver up-to-date web content, easily manage and administer their networks, and reduce overall network costs,' the company said in its prospectus.
At the end of August the company had about 100 customers, including Xerox Corp. (NYSE:XRX - news) and Delta Air Lines Inc. (NYSE:DAL - news). Its its competitors are Cisco Systems Inc. (NasdaqNM:CSCO - news) and Inktomi Corp. (NasdaqNM:INKT - news), among others. |
