SAN FRANCISCO Flash-memory semiconductor supplier Spansion LLC has reduced the estimated price of its initial public offering shares of common stock by $2-$5 each, according to a regulatory filing.
Spansion (Sunnyvale, Calif.) said it now expects the IPO price of its Class A common stock to be between $13 and $14 per share. Spansion had said in November that it expected the shares to fetch $16-$18 each.
Spansion now estimates it will receive $493 million in net proceeds from the sale of common stock. Earlier, Spansion had reportedly been expecting to receive $561 million.
Spansion, the flash memory venture of Advanced Micro Devices Inc. and Fujitsu Ltd.,
filed for the IPO in April. With the flash memory market plagued by a capacity glut and falling prices, memory suppliers have undergone rough sledding in recent months.
Spansion expects to
incur an operating loss for its fiscal fourth quarter. The company has already lost more than $257 million in 2005, after losing $20 million in 2004.