Asia Global Crossing edges higher
NEW YORK, Oct 6 (Reuters) - Stock of Asia Global Crossing Ltd (NasdaqNM:AGCX - news) edged higher on Friday, after the telecommunications carrier made its initial public offering on the Nasdaq.
Stock of the company, which trimmed its IPO terms and cancelled its media interviews on Friday, rose 3/16 to $7-3/16. Meanwhile, the tech-packed Nasdaq composite index (^IXIC - news) tumbled 3.87 percent to 3,337.
``This is not a good time to be pricing telecom issues,'' said an industry source.
Asia Global, formed in 1999 as a joint venture between heavyweights Global Crossing Ltd. (NasdaqNM:GBLX - news), Microsoft Corp. (NasdaqNM:MSFT - news) and Softbank Corp. , offered 68 million shares at $7, the bottom of its expected price range, according to underwriter Goldman Sachs.
The company raised $476 million through the deal, less than half the $848 million the company could have raised under its original IPO terms set in early September.
The company offered up to 19.7 million of the shares to be sold to three strategic investors, Hong Kong conglomerate Hutchison Whampoa Ltd. , Singapore Technologies Telemedia and Taiwan's Microelectronics Technology Inc. . Under prior terms, those investors would have gotten up to 13.8 million shares.
In addition, the two lead managers of the IPO, Goldman Sachs and Salomon Smith Barney, may collectively buy up to 14 million shares, while an affiliate of Global Crossing has indicated it may purchase up to 3 million shares.
The net effect of the changes is that Asia Global Crossing offered fewer shares to the public, and at a lower price. The company is also selling $400 million in senior notes due 2010.
The Hamilton, Bermuda-based company intends to be a pan-Asian telecommunications carrier providing Internet, data, voice and Web-hosting services to wholesale and business customers. |
