Comms vendor Mitel's initial public offering (IPO) is to price the 10 million-plus available shares significantly lower than expected.
The vendor, which will be listed on the NASDAQ Global Market, is to sell about 10.5 million company-owned shares at a price of $14 (£9.10) each. This will potentially raise almost $150m, but the share price is well short of the $18-20 Mitel projected last month.
The IPO is being made through an underwriting syndicate, headed by Bank of America Merrill Lynch, JP Morgan and UBS Investment Bank. An extra 1.6 million shares, owned by various shareholders, can be made available to the underwriters for the next 30 days, should over-allotment occur. Mitel will not profit from the sale of these shares.
Mitel planned to go public as far back as four years ago, but the plans were abandoned in light of the vendor's acquisition of rival Inter-Tel. The $723m deal was agreed in April 2007, and the Canadian firm swiftly put the kybosh on its IPO application process.
Watford-based Hills Components ceased trading last month and its current inventory will be auctioned off
Robots, predictive analytics and selling without a salesforce: Where the UK's leading MSPs think the market is heading
MSP bosses to share their thoughts on the future of the managed services market
Distributor on course to hit £20m revenue this year
In an interview with CRN, Wendy Mars says Cisco and its partners are no longer having to arm-twist customers on the need for digital transformation