Between $16 & $19
-Alex.
reuters.com
Lucent's Agere Narrows Expected IPO Range
Last updated: 20 Feb 2001 15:30 GMT+00:00 (Reuters)
WASHINGTON (Reuters) - Lucent Technologies Inc.'s LU.N Agere Systems Inc. on Tuesday narrowed the projected price range on its initial public offering, dropping the maximum possible proceeds to $7 billion from $7.4 billion but still making it the second-largest IPO in U.S. history.
Agere, whose optoelectronic components send and receive light that carries data and voice traffic over optical networks, said in an amended filing with the Securities and Exchange Commission that the price range for its IPO of 370.3 million Class A common shares was now $16 to $19 a share.
About two weeks ago it said the shares would go for between $15 and $20 each.
If the stock were to sell at the high end of the new range, the IPO would raise $7 billion, down from $7.4 billion at the top of the old range.
It would still be the second-largest IPO ever, behind last year's $9 billion offering of AT&T Wireless Group Inc. AWE.N , the wireless telephone arm of AT&T Corp. T.N , according to Thomson Financial Securities Data.
Agere's suggested market capitalization dropped to $25.4 billion from $26.7 billion as a result of the narrower price range.
It is common for companies and their underwriters to change IPO terms as the offering's debut nears. A date for Agere has not been set yet, but the company is looking for a New York Stock Exchange listing under the symbol "AGR" AGR.N .
The IPO is being handled by Morgan Stanley Dean Witter, which may sell 147.7 million of the 370.3 million shares.
Agere predicted it will net about $3.75 billion in proceeds if its 222.7 million shares sell for $17.50 each. It plans to use the money for general corporate purposes, including working capital.
Agere, which had revenue of $4.7 billion and a net loss of $76 million in fiscal 2000, will not get any money from the stock sold by Morgan Stanley.
Lucent shares were up 10 cents to $12.77 in early trading on the New York Stock Exchange. In the past 52 weeks the stock has been as high as $75.25 and as low as $12.19. |
