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Freescale files for IPO to raise $1 billion

5/9/2011 01:30 PM EDT
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krisi
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re: Freescale files for IPO to raise $1 billion
krisi   5/11/2011 1:46:52 PM
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If IPO doesn't rise enough interests it can be canceled. This is rare but can happen but I think this one will do just fine...Kris

Krutsch Robert Cristian
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re: Freescale files for IPO to raise $1 billion
Krutsch Robert Cristian   5/11/2011 11:02:10 AM
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Kiran this is certainly true for a successful IPO. But an IPO is always a 2 edged sword; you might end up with an IPO where you cannot get the amount of money you hoped for, and then what…? It might be interesting to see what the owners do in such a case... If Freescale would have assets that cover all the debt (and they don’t) then the owners would still get the money back, so they would not care so much. In this case, the IPO is meant to cover a little bit the gap between the assets value and the total debt. I really hope that this strategy will work out so that we have a competition on the silicon market..

elctrnx_lyf
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re: Freescale files for IPO to raise $1 billion
elctrnx_lyf   5/10/2011 4:45:07 PM
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IPO's are the latest trend among the many technology companies to come out with IPO. I encourage this since the companies like Free scale should have the support of consumer share holders to continue innovate better products for the future.

Krutsch Robert Cristian
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re: Freescale files for IPO to raise $1 billion
Krutsch Robert Cristian   5/10/2011 6:13:55 AM
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I like this staff a lot. We have some “investors” that buy a company. They do not take the company’s profit and split it so that the company can grow and invest further... no no no. They put a pile of debt on them and when the company cannot pay back due to crisis or don’t know what other events what will they do…? The investment guys don’t lose the money, only the pawns that invested blindly their pension.

kdboyce
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re: Freescale files for IPO to raise $1 billion
kdboyce   5/10/2011 3:04:50 AM
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Ryan and Singfast probably have it right. The investors have to cash out at some point, and Freescale has been making sales progress. So, try it and see what happens. Who knows where the industry will be in 2-3 years, especially if governments worldwide continue to run up unheard of deficits and their customers cannot buy enough?

Neo10
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re: Freescale files for IPO to raise $1 billion
Neo10   5/10/2011 2:11:14 AM
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A price which is a bit high IMO to be lapped up by investors. Freescale hasn't really come out with a rebound since it was taken private and with loses still in their balance sheet not sure how many woulod be enticed with this offer.

Singfast
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re: Freescale files for IPO to raise $1 billion
Singfast   5/10/2011 1:16:11 AM
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The IPO is to let the private equity firms get thier investment back. Private Equity loads the comapany taken over with debt. The semi industry is too unpredictable and the matrics used by PE when modeling the acquistion back in 2006 did not factor in the industry downturn from Q4-08 to Q4-09. The PE people felt the industry was now mature eneough and would not have a severe swing. Oppps!!

krisi
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re: Freescale files for IPO to raise $1 billion
krisi   5/9/2011 8:30:54 PM
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That could be Ryan...but it should be visible from financial statements where the loss is coming from

Mr. FA
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re: Freescale files for IPO to raise $1 billion
Mr. FA   5/9/2011 8:23:28 PM
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I'd speculate the losses on paper are due to the debt load from the leveraged buyout, not from a semiconductor company losing money.

krisi
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re: Freescale files for IPO to raise $1 billion
krisi   5/9/2011 8:15:35 PM
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@caiogubel, I know it sounds a little unreal when the company wants to raise $1B to pay back $1B loan...but the company is clearly worth something, even if in debt...consdier any start-up (which some might argue Freescale can be considered one) that is losing millions and goes IPO when it gets close to profitability, not that much different...how much Freescale is worth, that is another story, a typical metric (if there are no profits) is annual revenue with P/S ratio varying from 1 to say 5 depending on the business in question...Kris

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