Clearwire has further set itsproposed IPO terms of 20 million shares at a price range of $23.00 to $25.00per share, plus an additional 3 million for overallotments; and keep in mind that is has the A shares and B shares. The finalunderwriting group has been deemed as Merrill Lynch as the lead withco-lead underwriters Morgan Stanley and J.P.Morgan. Others in thesyndicate are Wachovia, Bear Stearns, Citigroup, Jefferies, RaymondJames, ThinkEquity, and Stifel Nicolaus. Here is the full SEC Filing from this morning.
We now have the year-end financials from the company for the first time, although we did already have the year-end subscriber figures: total revenues in 2006 were $100.18 million ($32.5+M from equipment; $67.6M from subscription service); operating expenses were $338+ million, so net losses were $284 million. Despite the losses, this is one the street is eagerly awaiting. Here was Jim Cramer’s IPO playbook on the CLWR IPO.
This one is split because the product has developed a core and thereis strong demand for the IPO, but the one issue that may act as aquasi-cap is the ongoing need for more capital. It will have to raisemore and more cash to fund ongoing expansion plans, so just know goingin that the Clearwire will be selling more shares and debt in therelatively near-future. This one is supposed to be well receivedthough and may still command a premium because of the McCaw founder andthe hot technology and backers.
Here is the last report we gave on it from January 30, and there is the prior filing on it at the end.
Jon C. Ogg
February 20, 2007
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