Newport Networks has priced its shares for the initial public offering on AIM, London’s alternative stock exchange. It is selling 38 million shares at an issue price of 0.71 pounds ($1.26) per share. The placing should raise 27m pounds ($48.2m), which will value the Chepstow, Wales-based company at approximately 45m pounds ($80.3m). Shares should begin trading on Wednesday 12 May.
What makes this IPO so remarkable is that the company doesn’t have profits or even any sales yet. Indeed, it doesn’t even have a product yet. Speaking to ComputerWire, a spokesman for the London Stock Exchange confirmed that no prior trading record is required for a listing on AIM.
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.
This article is based on material originally published by ComputerWire
