LMNE IPOed today. Currently trading under its IPO price of 12. Not the best day for an IPO.
Luminent is the result of several acquisitions. Its products include thin film and fiber-Bragg grating filters for DWDM (dense wave division multiplexing), WDM couplers, attenuators, add-drop multiplexers, detectors, transmitters, laser diodes, and transceivers for single-mode fiber optic transmission. In a nutshell, Luminent can create the beam of light and the components to move the beam around the network.
Luminent is profitable, a rarity among optic IPOs, earning US$4 million on US$65 million in revenues last year. Revenues have already hit US$43 million in the six months since December 1999. The US$207 million IPO will probably involve 12 million shares offered in the US$17 range. MRV will then hold 80% of Luminent stock, which it plans to distribute to MRV stockholders within 6 to 12 months of the IPO. MRV currently has 57 million shares outstanding, and holds 144 million shares of Luminent. That means the distribution ratio should be 2 shares of Luminent for every share of MRV. Not bad.
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