Corvis Raises $1.14 Bln in IPO, Sells Shares at $36 Each
7/27/00 4:43:00 PM
Source: Bloomberg News
URL: cnetinvestor.com
New York, July 27 (Bloomberg) -- Corvis Corp., a maker of equipment for fiber-optic networks that hasn't yet reported any sales, raised $1.14 billion in its initial public offering today.
Corvis sold 31.6 million shares at $36 each, above the $28 to $30 price range set on Tuesday by Credit Suisse First Boston, and more than the 27.5 million shares planned before. This week's filing doubled the offering price first announced in June of $13 to $15.
The IPO was the largest for a U.S. company that hasn't reported revenue, according to CommScan LLC, whose records date back to 1990. The company is benefiting from investor enthusiasm for the exploding, profitable market for fiber-optic equipment and parts as demand for Internet capacity surges.
Corvis's gear can send optical signals up to 3,200 kilometers (1.989 miles), compared to 400 to 600 kilometers for equipment currently in use. That lets network operators move calls and data across networks faster and more cheaply.
Columbia, Maryland-based Corvis has a pair of agreements each worth $200 million to sell equipment to Williams Communications Group Inc. and Broadwing Inc. The sales depend on successful testing of Corvis's products. Corvis said it successfully completed tests with Broadwing. Qwest Communications International Inc. has also agreed to buy $150 million of Corvis gear.
It was also the biggest of 11 U.S. IPOs planned tonight. Earlier, Avici Systems Inc., a maker of high-capacity data-traffic routers, raised $217 million in an initial public offering, after twice boosting the sale to meet robust demand.
Avici, Other IPOs
Avici sold 7 million shares at $31 apiece, above the $28 to $30 price range set on Monday by Morgan Stanley Dean Witter & Co., the investment bank managing the sale. The price was above the original range of $18 to $20 set in June.
Avici, which had $2.2 million in second-quarter sales, competes with larger rivals Cisco Systems Inc. and Juniper Networks Inc. in the market for the most powerful computer- networking equipment.
North Billerica, Massachusetts-based Avici's offering is the smaller of two makers of network gear today.
Corvis shares will begin trading tomorrow on the Nasdaq Stock Market under the symbol ''CORV.'' Robertson Stephens, Banc of America Securities and Chase H&Q also underwrote the stock sale.
Avici shares will trade on the Nasdaq Stock Market under the symbol ''AVCI.'' J.P. Morgan & Co., Lehman Brothers and UBS Warburg LLC also underwrote Avici's sale.
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