Veraz plans to raise about $66.5M in IPO |
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Published
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Fri, 30 Mar 2007 22:49
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NEW YORK (AP) - Telecommunications equipment provider Veraz Networks Inc. plans to raise about $66.5 million in an initial public offering planned for next week.The San Jose, Calif.-based company, which provides wireline, wireless and broadband service companies with equipment used to transport phone calls over networks using Internet protocol and older technologies, is offering about 6.8 million shares, and shareholder ECI Telecom Ltd. is selling about 2.3 million shares.Veraz will not receive proceeds from the sale of shares by ECI Telecom, which makes Veraz's voice compression products. The Israeli company, which currently owns 40.1 percent of Veraz, will have a 27.5 percent stake after the offering.The anticipated proceeds from the IPO assume the stock will price at $11, the midpoint of the expected range.Veraz plans to use the funds to expand its operations and add working capital for general corporate purposes. The company initially filed for the IPO in October.The company disclosed in a regulatory filing that it posted a loss of $13.9 million on revenue of $99.6 million in 2006.Veraz' competitors are major telephony equipment providers, such as Ericsson, Lucent Technologies and Nortel Networks. The company's rivals also include telecommunications and networking companies such as Cisco Systems and Sonus Networks.The company has been approved for listing on the Nasdaq Stock Market under the symbol 'VRAZ.'Credit Suisse Securities and Lehman Brothers are joint bookrunners on the deal. Veraz said the underwriters have an option to purchase as many as 1.4 million additional shares from Veraz and ECI to cover over-allotments.After the offering, Veraz will have 39.6 million shares outstanding.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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ECI Telecom expects gains on Veraz IPO 