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Israel-Based Voltaire Plans IPO

Israel-Based Voltaire Plans Initial Public Offering of 7.7 Million Shares

BILLERICA, Mass. (AP) -- Voltaire Ltd., an Israeli developer of server and storage switching products, said Tuesday it plans an initial public offering of 7.7 million ordinary shares. Voltaire expects to offer 5.8 million of the shares. A group of shareholders plan to sell the remaining 1.9 million shares.

In a regulatory filing with the Securities and Exchange Commission Tuesday, Voltaire said it anticipates the shares will price between $12 and $14 per share. Based on an offering price of $13, the value of the deal would total $100 million.

Also assuming an offering price of $13 per share, Voltaire expects to raise $67.5 million from its portion of the IPO, after expenses.

Voltaire plans to use the net proceeds to fund research and development, as well as business development and marketing. The company also plans use $5 million of the net proceeds to repay a loan in full.

For the three months ended March 31, Voltaire reported losses of $4.2 million, after paying preferred dividends, on sales of $8.6 million. Voltaire's top three customers - International Business Machines Corp., Sun Microsystems Inc. and Hewlett-Packard Co. - accounted for 67 percent of the company's sales during the quarter.

Voltaire expects to have 20.5 million shares outstanding after the offering.

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Posted at 10:03AM Jul 11, 2007 by Simon Bullen in Networking  |  Comments[0]