Agere Aims for $8.5 Billion IPO
Agere Systems Inc., the spinoff of Lucent Technologies Inc.'s (NYSE: LU) microelectronics division, is planning to raise as much as $8.5 billion dollars in its IPO.
That would make it one of the largest IPOs of all time, just shy of AT&T Wireless (NYSE: AWE), which raised $9 billion in April of last year.
In an updated registration statement filed yesterday with the Securities and Exchange Commission, the company stated that it plans to sell upwards of 370 million shares of stock in a price range of $15 to $20. The company would raise $5.5 billion at the lower end of that range and $7.4 billion at the top end of the range. But the investment bankers, led by Morgan Stanley Dean Witter, left room to boost the price upwards, filing for a maximum IPO size of $8.5 billion.
According to the filing, Lucent would hold on to 72.3 percent of the shares of Agere and would control 91.2 percent of the voting rights. Lucent officials have said they plan to distribute Agere shares to shareholders in late 2001.
Lucent executives are hoping the spinoff of Agere will help boost the value of Lucent stock. Many analysts believe the market had discounted the value of Agere within Lucent (see Analysts to Investors: "Buy Lucent" ).
Agere sells a large number of components for the communications industry, including integrated circuits and optoelectronics components such as lasers and integrated DWDM (dense wavelength-division multiplexing) modules. For the year ending Sept. 30, 2000, the company reported $4.7 billion in revenue and a loss of $76 million.
Agere had filed a preliminary prospectus in December (see Lucent's Agere Files for IPO), but that filing included few details and pegged the IPO at a token amount of $100 million.
-- R. Scott Raynovich, executive editor, Light Reading http://www.lightreading.com
That would make it one of the largest IPOs of all time, just shy of AT&T Wireless (NYSE: AWE), which raised $9 billion in April of last year.
In an updated registration statement filed yesterday with the Securities and Exchange Commission, the company stated that it plans to sell upwards of 370 million shares of stock in a price range of $15 to $20. The company would raise $5.5 billion at the lower end of that range and $7.4 billion at the top end of the range. But the investment bankers, led by Morgan Stanley Dean Witter, left room to boost the price upwards, filing for a maximum IPO size of $8.5 billion.
According to the filing, Lucent would hold on to 72.3 percent of the shares of Agere and would control 91.2 percent of the voting rights. Lucent officials have said they plan to distribute Agere shares to shareholders in late 2001.
Lucent executives are hoping the spinoff of Agere will help boost the value of Lucent stock. Many analysts believe the market had discounted the value of Agere within Lucent (see Analysts to Investors: "Buy Lucent" ).
Agere sells a large number of components for the communications industry, including integrated circuits and optoelectronics components such as lasers and integrated DWDM (dense wavelength-division multiplexing) modules. For the year ending Sept. 30, 2000, the company reported $4.7 billion in revenue and a loss of $76 million.
Agere had filed a preliminary prospectus in December (see Lucent's Agere Files for IPO), but that filing included few details and pegged the IPO at a token amount of $100 million.
-- R. Scott Raynovich, executive editor, Light Reading http://www.lightreading.com
joeysmith
12/4/2012 | 8:55:57 PM
re: Agere Aims for $8.5 Billion IPO
Hard-working, earnest people whose start-up companies get trashed beause they a) don't buy advertising from LightReading or b) aren't a Lightspeed portfolio company: 2,371...inclduing Lucent, Ciso and Nortel employees: 507,322
Readers who read LR misrepresentations about their companies and have the guts to rise up, reveal the truth and protect their companies and fellow employees: 3
Companies that subsidize LR's attacks on other companies through advertising dollars: 17
Challenging Steve Saunders and Lightspeed-backed LR in the name of accurate reporting: priceless
The truth will set you free. Can anyone else come forward with the truth please?
Thank you!
joeysmith
12/4/2012 | 8:55:57 PM
re: Agere Aims for $8.5 Billion IPO
# of vc's working 24x7 to build the networks of tomorrow: 97VC's who allow their portfolio companies to get trashed by Lightspeed-backed LightReading: 17
VC's who owe it to their portfolio companies to challenge this arrangement: 17
Likely shame of a VC who backs Lightreading when you look across at me at the upcoming Robbie Stephens dinner: incalculable
The truth: Priceless
What do people think? Let's oncover the truth!!!
radgrad
12/4/2012 | 8:55:56 PM
re: Agere Aims for $8.5 Billion IPO
This is like one of those great promotions you get when they change your title, give you more responsibility, yet no raise.
joeysmith
12/4/2012 | 8:55:55 PM
re: Agere Aims for $8.5 Billion IPO
Optical and access companies advertising on LR: 17# of these companies getting bad press on LR: 1
Probably monthly cost of a banner ad on a website: $35,000
Ethical value of "hush money": $0
The truth: priceless
My partners and I ask all fair-minded people in this inudstry to rise up and uncover the truth. Make yourself and your companies proud! If you sponsor LR, do the right thing!!!
Thank you!
rafaelg
12/4/2012 | 8:41:42 PM
re: Agere Aims for $8.5 Billion IPO
This is TRUTH...Author: rafaelg Number: 1
Subject: AGERE ANYONE? :-) Date: 3/22/2001 12:40:08 PM
http://www.lightreading.com/do...
Author: rafaelg Number: 1
Subject: 72% and 91%? You are kidding right? Date: 2/8/2001 11:31:08 AM
Don't expect everyone to be waiting at the door to buy Agere with a 91% of voting rights for LU!
Agere wont be totaly spun from it's anchor. It's just another way LU is raising money for more acquisistions which it can't do right now!!!
http://www.thestreet.com/_spyo...
Not BAD HUH? It seems everyone is staying out of this one...
EDUCATIONAL RESOURCES
FEATURED VIDEO
UPCOMING LIVE EVENTS
February 7-9, 2023, Virtual Event
February 15, 2023, Virtual Event
March 15-16, 2023, Embassy Suites, Denver, CO
March 21, 2023, Virtual Event
May 15-17, 2023, Austin, TX
December 6-7, 2023, New York City
UPCOMING WEBINARS
February 2, 2023
DIY Data Center Automation Deep Dive: Challenges and Opportunities for CSPs, Enterprises, and Cloud Providers
February 7, 2023
Optical Networking Digital Symposium - Day 1
February 9, 2023
Optical Networking Digital Symposium - Day 2
February 14, 2023
Achieve Your Growth Potential with Next-Gen Content Delivery
February 15, 2023
Digital Divide Digital Symposium
February 16, 2023
SCTE® LiveLearning for Professionals Webinar™ Series: Getting the Edge on Edge Computing
Webinar Archive
PARTNER PERSPECTIVES - content from our sponsors
How 5G Thrives ASEAN Digital Economy
By Huawei
Capitalizing On 5G Innovation To Deliver Breakthroughs At The Edge
By Kerry Doyle, sponsored by ZTE
All Partner Perspectives
GUEST PERSPECTIVES - curated contributions
Telco vs. Cable: Who comes out on top?
By Cheenu Seshadri, Managing Partner, Three Horizon Advisors
Don't worry about the government?
By Patrick Donegan, Principal Analyst, HardenStance
All Guest Perspectives
Agere wont be totaly spun from it's anchor. It's just another way LU is raising money for more acquisistions which it can't do right now!!!