Avaya files for $1 billion IPO
By Julianne Pepitone @CNNMoneyTech June 9, 2011: 5:36 PM ET
NEW YORK (CNNMoney) -- Next on the long list of tech companies rushing to take advantage of a suddenly friendly IPO climate: Avaya, which makes telecom equipment, filed Thursday to raise up to $1 billion in a public offering.
Avaya said in its filing that it will use to the money to "pay down certain long-term indebtedness." The company makes telecom infrastructure, video calling products and other data and communications technology.
The company's fiscal year began October 1, and in the six months ended March 31, Avaya booked $5.1 billion in revenue.
But Avaya isn't profitable. It lost $615 million in the first six months of this fiscal year, and hasn't netted a profit since 2007.
Avaya, which is based in Basking Ridge, N.J., began life as a unit of AT&T (T, Fortune 500). In 1996, Lucent spun off from AT&T and Avaya became Lucent's business communications unit.
Avaya itself spun off from Lucent in 2000, and it began trading as a public company in October of that year. It went private again in 2007 through a buyout by TPG Capital and Silver Lake Partners.
For its second public debut, the underwriters of the deal are a list of heavy-hitter banks: Morgan Stanley, Goldman Sachs, JP Morgan, Citigroup, Deutsche Bank, Bank of America, Barclays, UBS and Credit Suisse.
Avaya's filing comes as other tech companies, from big data to social media, are making their own moves to go public.
Earlier on Thursday, shares of data storage company Fusion-io (FIO) surged 18% in their public debut. Last month LinkedIn (LNKD) shares doubled in its IPO, and Groupon and Pandora have each filed their paperwork for public offerings.
Credit: CNN (www.cnn.com)
No comments:
Post a Comment