Newport Networks is planning to raise up to 15m pounds ($27.3m) from the initial public offering, valuing the company at between 30m pounds ($54.6m) and 35m pounds ($63.7m).
What makes this IPO so remarkable is that the Chepstow, Wales-based company doesn’t have profits or even any sales yet. Indeed, it doesn’t even have a product ready to ship.
It remains to be seen whether investors will risk putting their money into a pre-revenue company, as they did during the heady dot-com days. Newport Networks insists the difference this time is that it is a well-run company with proven management and a product ready for commercial deployment next year.
Newport’s chairman is Sir Terry Matthews, who founded Newbridge Networks Corp, back in 1986, and turned it into a major telecoms equipment player that employed more than 6,500 people worldwide and recorded 1999 revenue of $1.8bn. In May 2000, he sold the company to Alcatel SA for 4.4bn pounds ($8bn). He also co-founded Mitel Corp back in 1972.
Wesley Clover Corp, the holding company of Matthews, provided the initial funding for Newport Networks back in October 2000, and should be the chief beneficiary of the flotation. Shares are expected to begin trading in early May.
This article is based on material originally published by ComputerWire
