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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: KY who wrote (2510)	5/20/1999 12:35:00 AM
From: bwiser	Read Replies (1) \| Respond to of 3818

A little news from the north involving PMCS as a major shareholder in an IPO offering through the TSE launched May 10. Thought you Sierra watchers might be interested and would also like to hear your analytical feedback and thoughts on this offering, maybe even some hoopla. Warning: the IPO was successful but the stock is off to a slow start - I think because everyone in Toronto watches the NASDAQ. The syndicate release as issued by RBC Dominion Securities reads as follows; A syndicate led by ScotiaMcLeod and RBC Dominion Securities includes CIBC Wood Gundy and TD Securities are commencing to market the following new and secondary issue (all in Canadian dollars): PROPOSED OFFERING SIERRA WIRELESS, INC. COMMON SHARES SIZE: Approximately $56 to $65 million (4.5 million shares) - 2.83 million Treasury Shares - 1.67 million Secondary Shares PRICE: $12.50 TO $14.50 per share COMMON SHARES 13,770,732 Common Shares, after completion of the OUTSTANDING: offering PRINCIPAL After the Offering, PMC Sierra Inc. and Scotia Merchant SHAREHOLDERS: Capital will beneficially own approximately 26.5% and 19% of the Common Shares, respectively. THE COMPANY: Sierra Wireless is a leading provider of wireless data communications equipment used for a range of wireless applications including Internet access, e-mail, remote database inquiry and computer aided dispatch. The company develops, manufactures, markets sells and supports a broad range of single and multi-mode wireless data modems and enabling software for use with handheld computing devices, notebook computers and vehicle based or monitoring applications. Sierra Wireless is considered a technical and market leader in wireless data, having been recognized with several significant industry awards. Products are based on open standards, including the Internet Protocol, and operate on wireless data networks supported by major wireless communications service providers. USE OF PROCEEDS: The Company intends to use the net proceeds as follows: approximately (i)$12 million to fund research and development programs; (ii)$6 million to fund sales and marketing programs; and (iii) the balance for general corporate purposes including future potential strategic acquisitions and working capital. DIVIDEND POLICY: The Company intends to reinvest its earnings to finance the growth and development of its business. LISTING: Application has been made to list the Common Shares on the Toronto Stock Exchange. ELIGIBILITY: Eligible for RRSP's, RRIF's and DPSP's and not considered foreign property * Exciting Growth in Wireless Data Sector - U.S. wireless data users are expected to grow at a GAGR of 43%, totaling 12.6 million by 2002 - Growth driven by convergence of wireless communications, portable computers and the Internet * Broad Product Line, Well Positioned for New Product Development - North American leader in CDPD modems - Broad product line focused on fastest growing market segments and applications. - Well positioned to extend existing technology platform and build next generation products * Excellent Tract Record and Momentum - Two-year compound annual growth rates of 76% for revenue and 114% for gross margin