News - UIHIA IPO offering 20x oversubscribed ! offering now on Friday
UPC Says IPO 20 Times Subscribed, Pricing on Friday (Update1) (Adds United International shares in 7th paragraph.)
London, Feb. 11 (Bloomberg) -- United Pan-Europe Communications NV, the Netherlands' largest cable company, said its initial stock offering, completed yesterday, was 20 times subscribed. It delayed pricing the shares until Friday, one day later than planned, because of a paperwork problem.
Amsterdam-based UPC, which aims to raise as much as $1.25 billion through a sale of 40 million common shares and American depositary shares, said the shares will be priced before the Dutch market opens tomorrow and will immediately begin trading.
The company will use the money to upgrade its broadband cable network, which passes six million homes in 10 European countries and Israel. Investor interest in European cable networks has surged as companies like UPC offer television and telephone service as well as high-speed Internet access.
Cary Martin, a UPC spokesman, said the company delayed setting the price on the shares because of ''technical problems'' in filing the appropriate paperwork in the U.S.
He said the offering, expected to be completed in a price range between 27 euros and 29 euros ($30-$33) was 20 times subscribed. That price range was raised Monday from 24 euros to 27 euros.
Denver-based United International Holdings Inc. will remain UPC's controlling shareholder with 62 percent. Microsoft Corp., the world's No. 1 software maker, plans to invest $300 million in UPC shares, while Discount Investment Corp., an Israeli holding company, is buying $45 million worth of shares.
United International's shares rose 3 11/16, or 7.6 percent, to 52 1/2 yesterday on the Nasdaq stock exchange.
UPC shares will be listed on the Amsterdam and Nasdaq stock exchanges. The sale was managed by Goldman, Sachs & Co. and Morgan Stanley Dean Witter.
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