IPO shares must be in high demand
Monday December 10, 12:10 pm Eastern Time
Netscreen to sell more IPO shares at higher prices
WASHINGTON, Dec 10 (Reuters) - Network security provider Netscreen Technologies Inc. on Monday said it plans to sell 10 million common shares in an initial public offering, 2 million more than planned.
The Sunnyvale, California-based company, which is scheduled to debut Wednesday on Nasdaq under the symbol ``NSCN'' (NasdaqNM:NSCN - news), also said the shares may sell for $12 to $14 apiece, up from a prior range of $9 to $11.
The increase in the range suggests investor enthusiasm for the IPO and comes at a time when the market for new issues looks to be on the rise.
Netscreen disclosed the changes in an amended filing with the Securities and Exchange Commission. It has been trying to go public since early October.
Under the new terms, the company could make $120 million to $140 million from the IPO, a sharp rise from the $72 million to $88 million it might have reaped under the previous terms.
It plans to use the net proceeds for general corporate purposes and working capital as well as possible investments in or acquisitions of businesses, products or technologies.
Netscreen will have a potential market value of more than $1 billion based on 72 million shares outstanding and a $14 per share stock price.
The IPO is being handled by Goldman Sachs, J.P. Morgan, UBS Warburg and Wachovia Securities, which have an option to buy 1.5 million extra shares to cover any over-allotments.
Netscreen's security systems deliver firewall, virtual private network and network traffic management services in a single device.
It said its competitors include Check Point Software Technologies Ltd. (NasdaqNM:CHKP - news), Symantec Corp. (NasdaqNM:SYMC - news) and WatchGuard Technologies Inc. (NasdaqNM:WGRD - news) |
