Corvis IPO Terms Increased
Investment banks have bumped up the terms of the Corvis Corp. public offering of stock (see Corvis Closes in on IPO ), with the share price range raised to $28-$30, from $13-$15.
The lead underwriter, Credit Suisse First Boston, increased the size of the deal today, meaning demand for the shares is heating up leading up to the IPO, which is expected Friday. This means Corvis could raise up to $797.5 million by issuing 27.5 million shares of stock -- almost double the amount it expected to raise with the lower price range.
Corvis products have completed trials at Broadwing Inc. (NYSE: BRW) and Williams Communications Group (NYSE: WCG) and are being tested at Qwest (NYSE: Q) (see Corvis Completes First Field Trials), but the company has yet to realize any revenue. Regardless, Wall Street is apparently eager to place big bets on Corvis, which claims to offer an "all-optical" switch but has been coy about sharing details with the press. Corvis founder and CEO David Huber is former founder of Ciena Corp. (Nasdaq: CIEN), (see Doctor Huber's Revenge).
-- R. Scott Raynovich, Executive Editor, Light Reading, (http://www.lightreading.com)