The market slump has apparently led Wintegra Inc. to abandon its offering altogether. Demand was low in the company’s attempted offering last night on Nasdaq, and the company would not agree to further cut the value for the IPO, and cancelled it instead.
Wintegra, developer of the WinPath single-chip-solution for communications equipment vendors, tried to improve the terms of its offering when notified the US Securities and Exchange Commission (SEC) yesterday that it was reducing the number of shares being offered for sale as part of its IPO on Nasdaq.
Wintegra said the number of shares to be offered would be cut from five million to 4.89 million. The company will try to raise $63.5 million altogether, including $41 million from the issue of new shares. The company value for the offering is estimated at $290 million.
Wintegra first filed its prospectus for an IPO in February 2006. The company still plans to issue 3.17 million new shares, but shareholders cut their offer for sale from 1.83 million shares to 1.72 million.
The head underwriter is Goldman Sachs & Co. (NYSE:GS), and & Co., JPMorgan Chase Co. (NYSE:JPM), CIBC World Markets and Thomas Weisel Partners LLC are the co-managers. They have a green shoe option to buy an additional 613,531 new shares and 82,194 shares from the company’s shareholders.
Wintegra cut the share price for the offering from $14-16 to $12-14, because of the markets’ weakness.
Wintegra’s offering is not the only one affected by market weakness in the past month. Planned offerings in London by Strauss-Elite Ltd. (TASE:STEL) and Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) subsidiary AFI Europe NV were also postponed because of worries about low demand and reduced values for the companies.
Published by Globes [online], Israel business news - www.globes.co.il - on June 28, 2006
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