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Pete Baldwin
Pete Baldwin
12/5/2012 | 5:15:06 PM
re: NeoPhotonics Sets IPO Terms


The length of time this has taken... that can't be a good sign, can it?


Separately:  The new S-1 says Neo underwent a 1-for-25 reverse split in November, and the payout for those "Series X" shares got simplified - they'll be swapped for 400 Neo common shares each.

deauxfaux
deauxfaux
12/5/2012 | 5:15:05 PM
re: NeoPhotonics Sets IPO Terms


When you look at the total amount of invested capital in this thing....and the time it has taken to get to IPO with the classic 50% VC IRR expectation for the return on capital....Neo is a disaster. Bandel at Oak has been writing checks seemingly forever and IMO, throwing bad money after good into an enterprise that cannot remotely claim to deliver POSITIVE, risk adjusted (well, probably not even risk adjusted)  shareholder value.


As an old compadre of mine once said "you can't make chicken salad out of chicken **** no matter how much mayo you've got in the jar"


 

BigBro
BigBro
12/5/2012 | 5:15:03 PM
re: NeoPhotonics Sets IPO Terms


> The length of time this has taken... that can't be a good sign, can it?


Probably not.


BTW, Force10 filed their S-1 on March 2, 2010, and not much has been heard from them since...

Stevery
Stevery
12/5/2012 | 5:15:03 PM
re: NeoPhotonics Sets IPO Terms


Anyone have a tally for total money in? 

pandapanda
pandapanda
12/5/2012 | 5:15:00 PM
re: NeoPhotonics Sets IPO Terms


Quite a few tech manufacturing IPOs have been in the pipeline since spring last year because the macro economic conditions were bad and the markets were not ready for them.

Pete Baldwin
Pete Baldwin
12/5/2012 | 5:14:59 PM
re: NeoPhotonics Sets IPO Terms


Very true (and the reminder, below, about Force10 is appropos) ...


But there are so many question marks over this one. Neo raised more than $40M just before filing. Its got a deep dependence on Huawei that seems to just keep getting deeper (full 2010 results would be very revealing on that count). Just doesn't seem like an easy sell.

BigBro
BigBro
12/5/2012 | 5:14:52 PM
re: NeoPhotonics Sets IPO Terms


Sure, but everyone knew (or should have known) at the time that it was going to be a difficult environment for new offerings. The world had just been through the deepest recession since the Great Depression, after all.


The only reason to time your IPO in early 2010 was either you were confident that you'd have a blockbuster IPO, or you were desperate to raise cash.


Look at Force10's S-1, and their most recent "Series A" funding round (they reset the "round counter" when they merged with Turin -- the last "pure Force10" round was their $113m Series F in early 2007, which brought their total funding to $400m: http://gigaom.com/2007/02/05/f..., and their public statements about their profitability that they've made since then, and judge for yourself which boat Force10 is in...

^Eagle^
^Eagle^
12/5/2012 | 5:14:09 PM
re: NeoPhotonics Sets IPO Terms


Looks like we will see how the Neophotonics IPO goes fairly soon.  the financial news services all talk about an IPO early this week.  Perhaps Tuesday.


it will be interesting.


sailboat

^Eagle^
^Eagle^
12/5/2012 | 5:14:08 PM
re: NeoPhotonics Sets IPO Terms


latest wire service reports say Neo will go on Wednesday.  Earlier speculation was that it would be Tuesday.


sailboat

Pete Baldwin
Pete Baldwin
12/5/2012 | 5:13:58 PM
re: NeoPhotonics Sets IPO Terms


IPO launched this morning at $11 per share (high end of the range), selling 7.5 million shares (0.5M more than originally proposed).  Shares are up to $13.50 after about an hour of trading (3.38M shares traded).


I think there are still a lot of question marks around the company, but for the moment, they're profitable, and they've found a following.



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