Stratos Lightwave, Methode unit, files for IPO
Reuters Company News - April 17, 2000 11:40
WASHINGTON, April 17 (Reuters) - Stratos Lightwave Inc., a wholly-owned subsidiary of Methode Electronics Inc. , filed to raise as much as $184 million in an initial public offering of common stock.
Stratos Lightwave is a maker of optical subsystems for high data rate networking, data storage and telecommunications applications that convert electronic signals into optical signals and back into electronic signals.
The conversions are done to facilitate the transmission of data over optical communications networks, Stratos Lightwave said. It also makes components and cable assemblies for various networks.
The Chicago-based company did not reveal how many shares it would sell in the IPO or the expected per-share price in a preliminary prospectus filed with the Securities and Exchange Commission late on Friday. Those details are expected later.
Methode has said it plans to divest its remaining equity interest in Lightwave within six to 12 months after the IPO in a tax-free distribution to stockholders, according to the filing.
In the nine months ended Jan. 31, the company had $48.5 million in net sales with almost $2.7 million in net income, the prospectus showed.
Stratos Lightwave said it plans to use the IPO proceeds for working capital, capital spending, research and development, and to pay $3 million of the additional purchase price in connection with its acquisition of Polycore Technologies Inc.
Cisco Systems Inc. and Nortel Networks Corp. are among a host of its customers.
The $184 million figure cited in the prospectus was done merely to calculate the SEC registration fee. Stratos Lightwave said it plans to seek a listing on Nasdaq once it goes public, but did not disclose the planned stock symbol.
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At $36 now, wish it would dip a little lower so I could buy again.
Jack |
