Infonet Services Plans to Raise $710 Mln in IPO
|An SI Board Since December 1999|
WASHINGTON (Reuters) - Infonet Services Corp. plans to raise over $710 million in an initial public offering, the company said Wednesday.
The El Segundo, California, data communications company filed with the U.S. Securities and Exchange Commission for an offering of about 51.2 million shares in a projected price range of $18-$21 each.
The company, which plans to list its stock on the New York Stock Exchange, would offer 38,461,600 shares of Class B common stock, while selling stockholders -- including KDD Corp. of Japan, KPN Telecom NV of the Netherlands, Swisscom AG and Sweden's Telia AB, among others -- would offer 12,820,700 shares.
Infonet provides cross-border managed data communications services including remote access, intranet, multimedia and Internet services, to more than 1,150 corporations around the globe.
After the offering there would be about 469.5 million Infonet shares outstanding, putting its initial market capitalization at about $9.15 billion, based on a median $19.50 per share initial price.
The company expects to net $710.8 million from the IPO, which would be used to develop and expand its network infrastructure as well as for working capital and general corporate purposes, according to the filing.
Infonet would not receive any of the proceeds from the sale of shares by stockholders.
The underwriters have been allotted about 7.69 million extra shares to purchase in the event of heavy demand. Merrill Lynch & Co. and Warburg Dillon Read LLC are the joint global coordinators of the IPO.
The company also plans to list its shares on the Frankfurt Stock Exchange.