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Tunrayo
In my opinion, this is a very expensive IPO. I do not want to pay $18 for shares ...
Baolt
There was a huge effort by NXP fellows to improve and get a better picture at ...
NXP puts IPO in price range to raise $700 million
Peter Clarke
7/23/2010 9:56 AM EDT
LONDON — In a reduction of the expected billion-dollar initial public offering NXP has priced its IPO offering of 34 million shares at between $18 and $21 each, to raise between $612 million and $714 million.
The shares, set to be traded on Nasdaq, represent about 14 percent of the total stock of the company and would be traded on Nasdaq. The price values the company at about $4.5 billion. The money is to be used to pay off some of the company's debt, the filing said.
The IPO was filed originally by an entity called Kaslion Acquisition, which has changed its name to NXP Semiconductor NV. Kaslion is the name of the vehicle created by the private equity consortium that acquired NXP from Philips in 2006. Kohlberg Kravis Roberts & Co., (KKR) led the consortium which acquired an 80.1 percent stake in NXP. Other investors included Silver Lake Partners, Bain Capital, Apax and AlpInvest Partners. Philips has retained its 19.8 percent stake in NXP.
Since then NXP has been loss making and has divested several units to reduce costs and refocus the company on high-performance analog and mixed-signal ICs. NXP completed the divestment of its cordless and VoIP terminal operations to DSP Group. In 2008, NXP's wireless operations from its former mobile and personal segment were contributed to a joint venture, ST-NXP Wireless.
Last year, NXP completed a strategic alliance with Virage Logic and obtained approximately 9.8 percent of Virage Logic's outstanding common stock. This transaction included the transfer of its CMOS intellectual property and development team in exchange for the rights to use Virage Logic's intellectual property and services. In 2010, NXP divested a major portion of its former home segment to Trident Microsystems Inc.
Related links and articles:
Semicon: Intermolecular mulls IPO
MagnaChip withdraws IPO - again
Inphi files for $115 million IPO
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Baolt
7/23/2010 5:15 PM EDT
There was a huge effort by NXP fellows to improve and get a better picture at the end of the H1 in order to show bigger value of co. to possible buyers, i doubted indeed they would offer 1B$ share despite wanted to decrease debts with such rumors, and exact realities at the end. ~700K$ is something ok but value between $18 and $21 each is some kind of humble one, however there is the KKR & dept reality in the middle.
No matter what happened so far spin-offs, shrinking etc. NXP is still big still strong company. Especially thanks to 2010 boom which helped them to pursue bigger market share at MMS and Automotive chips where they made wise desicions when everybody tended to squeeze capacities. As like freescale as like infineon as like fairchild they had, having bad times but future is gestate for unification/ or dispossession
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Tunrayo
7/26/2010 2:26 PM EDT
In my opinion, this is a very expensive IPO. I do not want to pay $18 for shares currently worth just over £3 (see my comments in the Readers' section).
I feel NXP is a company trying to get investors to pay off their debts and give back a less than proportionate share of the company to the investors. Why would any investor want to pay 6 times the worth of an investment.
Furthermore, NXP's Operational costs are really high and it can't seem to earn any money. This is why they are divesting a number of operations in an effort to trim costs (but these cuts will reduce revenues as well).
Nevertheless, I would not want to gamble on whether they would get it right because at the current IPO price of $18, I would only expect to make 2.2% on my investment if they could somehow earn $100 million in the next financial year. But the thing is - they are losing money right now and I doubt if that will change soon.
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