CSR is expected to float 25% of the company before the end of the first quarter in March. Analysts expect more than 60m pounds ($75.5m) to be raised, giving the company a market capitalization of about 250m pounds ($314.7m).

The purpose of the float is to create a public market for the company’s ordinary shares, and to strengthen its balance sheet to provide increased security and confidence for its customers.

The flotation will include an offer of new and existing shares to institution investors in the UK, and internationally, including the US. Credit Suisse First Boston has been appointed sole bookrunner and sponsor. CSFB and Cazenove have been appointed joint lead managers and will act as joint brokers to CSR. SG Cowen will act as US co-manager.

CSR specializes in providing Bluetooth solutions to designers and OEMs As a fabless silicon supplier, it designs and engineers its Bluetooth solutions in-house, while subcontracting the manufacture and testing to leading silicon foundries.

The Cambridge, UK-based company claims to be a world-leading provider of single-chip Bluetooth component designs, and offers seven distinct packages covering headsets, PDAs, automotive hands-free kits, modems, telephone handsets and a general-purpose cable replacement package. Its customers include mobile phone makers Nokia, NEC, Panasonic and Sharp and laptop makers Toshiba, Sony, HP, IBM, NEC, Fujitsu and Hitachi.

CSR is privately held and has enjoyed a year of rapid growth. For the year ending December 31, 2003, it reported revenue of $67.6m, an increase of 144% on 2002. For the three months ended December 31, it achieved operating profit of $3.6m (its second consecutive quarter of profitability) on revenue of $26.7m.

The company employs 198 employees and has offices in the US, Japan, Singapore, Taiwan and Denmark, with sales representatives across Europe, Asia and the US.

The company announced that John Whybrow, chairman of building materials company Wolseley Plc and a former chairman of Philips Electronics UK, would become CSR’s chairman on listing. David Tucker, a former M&G investment manager, had been made a non-executive director.

The Bluetooth market has been tripling every year in size, with 10 million units shipped in 2001, 30 million in 2002 and an estimated 90 million in 2003.

This article is based on material originally published by ComputerWire