Israel-Based Voltaire Plans IPO
10.07.2007 19:13
Computers
- Source: Forbes
Voltaire Ltd., an Israeli developer of server and storage switching products, said Tuesday it plans an initial public offering of 7.7 million ordinary shares. Voltaire expects to offer 5.8 million of the shares. A group of shareholders plan to sell the remaining 1.9 million shares. In a regulatory filing with the Securities and Exchange Commission Tuesday, Voltaire said it anticipates the shares will price between $12 and $14 per share. Based on an offering price of $13, the value of the deal would total $100 million. Also assuming an offering price of $13 per share, Voltaire expects to raise $67.5 million from its portion of the IPO, after expenses. Voltaire plans to use the net proceeds to fund research and development, as well as business development and marketing. The company also plans use $5 million of the net proceeds to repay a loan in full. For the three months ended March 31, Voltaire reported losses of $4.2 million, after paying preferred dividends, on sales of $8.6 million. Voltaire's top three customers - International Business Machines Corp. (nyse: IBM - news - people ), Sun Microsystems Inc. (nasdaq: SUNW - news - people ) and Hewlett-Packard Co. (nyse: HPQ - news - people ) - accounted for 67 percent of the company's sales during the quarter. Voltaire expects to have 20.5 million shares outstanding after the offering. JP Morgan Securities Inc. and Merrill Lynch (nyse: MER - news - people ) are acting as lead underwriters for the IPO. Thomas Weisel Partners and RBC Capital Markets are also listed as underwriters. Voltaire and the selling shareholders have given the underwriters an option to buy 1.2 million additional ordinary shares to cover overallotments. The company has applied to list its shares on the Nasdaq Stock Market (nasdaq: NDAQ - news - people ) under the symbol "VOLT (other-otc: VOLT.PK - news - people )." Voltaire's U.S. headquarters are located in Billerica, Mass. __________ Questions or comments about this story should be directed to reporter Kristen A. Lee at 212-621-7190. Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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