Netgear raises IPO price range
Copyright 2003 The Deal, L.L.C.
Daily Deal/The Deal
July 31, 2003 Thursday
A provider of cable and wireless networking products for small businesses and home users, Netgear Inc., has increased the price range of its planned initial public offering to $12 to $14 a share, according to the deal's lead underwriter, Lehman Brothers Inc.
Previously, Santa Clara, Calif.-based Netgear planned to offer 7 million shares at $10 to $12 a share.
But, at the new price range, the estimated size of Netgear's IPO is now as much as $98 million. The shares are expected to price today. Co-managers include Merrill Lynch & Co. and UBS Investment Bank.
According to its latest filing with the Securities and Exchange Commission, Netgear plans to use about $20 million of the proceeds from the offering to pay down a promissory note payable to Nortel Networks Inc.
Netgear was a subsidiary of Nortel until March 2000. Netgear's principal competitors in the small business market include 3Com Corp., Allied Telesyn International Corp., Cisco Systems Inc., Dell Computer Corp., Hewlett-Packard Co., Nortel Networks and more. In the home market, Netgear's rivals include Microsoft Corp. Netgear will trade on Nasdaq under the symbol NTGR.