IPO Watch: Freescale Terms Set For Trading This Week (FSL)

We have covered enough of the background work in the Freescale Semiconductor Holdings IPO that we want to just focus on the terms of this week’s IPO.  We currently are looking at a Wednesday pricing and terms have now been set at $22.00 to $24.00 per share for roughly 43.5 million shares in total. 

Freescale has been approved for listing on the New York Stock Exchange under the symbol “FSL.”  The company lists that 239,858,593 shares will be outstanding after this offering, but 246,383,593 shares will be outstanding if the over-allotment option gets exercised in full.  At $23.00 per share in the mid-point, Freescale will have an implied market cap of close to $5.5 billion. 
 
The underwriters are numerous.  The book-runners are listed as Citi, Deutsche Bank, Barclays Capital, Credit Suisse, and J.P. Morgan.  Other underwriters and co-managers are listed as Goldman Sachs, RBC Capital Markets, UBS, Sanford Bernstein, Gleacher & Company, Oppenheimer & Co., Pacific Crest Securities, and Piper Jaffray. Freescale also granted the underwriters a 30-day option to purchase up to an additional 6,525,000 common shares from to cover over-allotments.

Net sales in 2008 were $5.226 billion, 2009 was $3.508 billion, and 2010 was $4.458 billion.  The company had operating losses in each of the last three years but last’s year’s operating loss was only $61 million.  If you take a net loss for 2010 before income taxes that was $1.078 billion.

The full amended filing is here.

JON C. OGG