April 28, 2000 8:00 AM PDT
ON Semiconductor, Software Technologies brave IPO market
ON Semiconductor (Nasdaq: ONNN) priced 30 million at $16 per share for trading Friday, in the middle of its $15 to $17 range. The company had lowered its range from an original $16 to $18 a share amid market volatility.
The company, also known as SCG Holding was formerly the Semiconductor Components Group of Motorola (NYSE: MOT). Texas Pacific Group acquired the company in 1999, and Motorola kept a 9 percent stake.
The company's analog, logic, and discrete semiconductors are used in appliances, cell phones, computers, global positioning systems, and set-top boxes. Competitors include STMicroelectronics (NYSE: STM), National Semiconductor (NYSE: NSM) and Toshiba.
ON Semiconductor had net income of $29.8 million in 1999, on sales of $798.7 million. The company said proceeds of the offering will go to redeem the company's preferred stock and prepay a portion of high-yield notes and a portion of senior bank debt.
Morgan Stanley Dean Witter and Chase H&Q are lead manager and co-lead manager, respectively, for the offering. Lehman Brothers, Robertson Stephens and Salomon Smith Barney are co-managers.
The company priced 4 million shares at $12 a piece, after backing down from its original plan to sell 6 million shares between $16 and $18.
Net loss for the year ended December 31 was $25.9 million on revenue of $55.2 million, as compared to a loss of $11.2 million on revenue of $37.5 million for 1998.
Morgan Stanley Dean Witter acted as the lead manager of the offering. The co-managing underwriters of the offering were Merrill Lynch & Co. and Donaldson, Lufkin & Jenrette.
Competitors include Active Software (Nasdaq: ASWX), New Era of Networks (Nasdaq: NEON) and CrossWorlds (Nasdaq: CWLD).
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