IPO outlook: Oct. 1, 2004

IPO outlook: Oct. 1, 2004

Byline: edited by Greg Johnson

Hutchinson Telecom prices IPO

Hutchison Telecommunications International Ltd. on Thursday, Sept. 30, announced an IPO price range of HK$6.52 and HK$7.55 a share. Hutchison Telecom’ owner, Li Ka-Shing’s Hong Kong conglomerate Hutchison Whampoa Ltd., is offering to sell a 25% stake, or 1.15 billion shares, in a dual listing in New York and Hong Kong to raise between HK$7.53 billion and HK$8.7 billion ($966 million and $1.1 billion). The telecom has sought to dispel concerns about a proposed separate listing in India by stressing that its parent would not sell any shares in the Indian IPO. Whampoa has pledged to reinvest the same amount of IPO proceeds in the telecom unit by buying its preference shares. Hutchison Telecom will price its IPO shares on Oct. 7 in the U.S. and Oct. 8 in Hong Kong. The IPO is managed by Hutchison Whampoa’s longtime financial adviser, Goldman, Sachs & Co. — Shu-Ching Jean Chen

CallWave in 4M share IPO

Santa Barbara, Calif., telecom CallWave Inc. on Thursday launched a $40 million IPO, listing 4 million shares at $10 each on the Nasdaq. CallWave offers add-on features, such as call forwarding between wireless, wireline and Internet phones, which it has dubbed “call bridging.” It also offers call screening and voicemail. CallWave posted $39 million in revenue in fiscal 2004, up from $22.5 million the year before. The IPO represents 21% of its equity. Shareholders own the rest. Deutsche Bank Securities was lead manager for the offering and Piper Jaffray Cos., First Albany Cos. and WR Hambrecht + Co. were co-managers. — Chris Nolter

51job soars on first trading day

China’s largest job placement agency, 51job Inc., on Thursday, Sept. 30, soared on its first day of trading on Nasdaq to close at $21.15 a shares. This is 51% higher than its IPO price of $14 on Wednesday. 51job raised $73.5 million in a sale of a nearly 20% of its shares and could generate an additional $11 million if underwriters of the Shanghai-based company exercise their options. Shares of 51job opened at $18.98 and hit a high of $22.9 Thursday. The IPO received high demand from international investors, allowing the company to boost the price range from between $11 and $13 a share. One American Depository Share represents two 51job common shares. Morgan Stanley is lead manager for the offering and UBS, Piper Jaffray Cos. and CLSA Asia-Pacific Markets are co-managers. — S.C.J.C.

ITS switches to a stock IPO

Rural phone services provider Iowa Telecommunications Services Inc. has changed its IPO plans. In a revised registration statement with the Securities and Exchange Commission, the Newton, Iowa, phone company now proposes to issue common stock instead of income deposit securities and hopes to raise up to $363 million. ITS expected to generate as much as $743 million with an IDS IPO, according to in an August filing. Based on Canada’s income trusts, IDS’ are a hybrid of debt and equity that are designed to minimize taxes and maximize investor returns. With an IDS capital structure, much of a company’s profits are distributed to security holders through dividend and yield payments. — C.N.

COMPANY: Deutsche Bank Securities

COMPANY: Hutchison Whampoa Ltd.

COMPANY: Goldman, Sachs & Co.

www.TheDeal.com

Byline: edited by Greg Johnson

Hutchinson Telecom prices IPO

Hutchison Telecommunications International Ltd. on Thursday, Sept. 30, announced an IPO price range of HK$6.52 and HK$7.55 a share. Hutchison Telecom’ owner, Li Ka-Shing’s Hong Kong conglomerate Hutchison Whampoa Ltd., is offering to sell a 25% stake, or 1.15 billion shares, in a dual listing in New York and Hong Kong to raise between HK$7.53 billion and HK$8.7 billion ($966 million and $1.1 billion). The telecom has sought to dispel concerns about a proposed separate listing in India by stressing that its parent would not sell any shares in the Indian IPO. Whampoa has pledged to reinvest the same amount of IPO proceeds in the telecom unit by buying its preference shares. Hutchison Telecom will price its IPO shares on Oct. 7 in the U.S. and Oct. 8 in Hong Kong. The IPO is managed by Hutchison Whampoa’s longtime financial adviser, Goldman, Sachs & Co. — Shu-Ching Jean Chen

CallWave in 4M share IPO

Santa Barbara, Calif., telecom CallWave Inc. on Thursday launched a $40 million IPO, listing 4 million shares at $10 each on the Nasdaq. CallWave offers add-on features, such as call forwarding between wireless, wireline and Internet phones, which it has dubbed “call bridging.” It also offers call screening and voicemail. CallWave posted $39 million in revenue in fiscal 2004, up from $22.5 million the year before. The IPO represents 21% of its equity. Shareholders own the rest. Deutsche Bank Securities was lead manager for the offering and Piper Jaffray Cos., First Albany Cos. and WR Hambrecht + Co. were co-managers. — Chris Nolter

51job soars on first trading day

China’s largest job placement agency, 51job Inc., on Thursday, Sept. 30, soared on its first day of trading on Nasdaq to close at $21.15 a shares. This is 51% higher than its IPO price of $14 on Wednesday. 51job raised $73.5 million in a sale of a nearly 20% of its shares and could generate an additional $11 million if underwriters of the Shanghai-based company exercise their options. Shares of 51job opened at $18.98 and hit a high of $22.9 Thursday. The IPO received high demand from international investors, allowing the company to boost the price range from between $11 and $13 a share. One American Depository Share represents two 51job common shares. Morgan Stanley is lead manager for the offering and UBS, Piper Jaffray Cos. and CLSA Asia-Pacific Markets are co-managers. — S.C.J.C.

ITS switches to a stock IPO

Rural phone services provider Iowa Telecommunications Services Inc. has changed its IPO plans. In a revised registration statement with the Securities and Exchange Commission, the Newton, Iowa, phone company now proposes to issue common stock instead of income deposit securities and hopes to raise up to $363 million. ITS expected to generate as much as $743 million with an IDS IPO, according to in an August filing. Based on Canada’s income trusts, IDS’ are a hybrid of debt and equity that are designed to minimize taxes and maximize investor returns. With an IDS capital structure, much of a company’s profits are distributed to security holders through dividend and yield payments. — C.N.

COMPANY: Deutsche Bank Securities

COMPANY: Hutchison Whampoa Ltd.

COMPANY: Goldman, Sachs & Co.

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