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Propel sets IPO terms
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September 19, 2000: 6:12 p.m. ET
Motorola wireless unit plans for $423M with 23.5M shares at $17 to $19
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NEW YORK (CNNfn) - Motorola wireless subsidiary Propel Inc. set the terms of its initial public offering Tuesday that is expected to raise $423 million.
In a filing with the Securities and Exchange Commission, Propel disclosed that it plans to sell 23.5 million shares at $17 to $19 each via lead underwriters Goldman Sachs and Morgan Stanley Dean Witter. Propel originally filed its deal in June.
Propel provides wireless services in over 14 countries, including Mexico, Israel, Hong Kong, Chile, Jordan and Uruguay. Propel has wireless licenses that cover over 330 million people and provides cellular services to about 8.2 million subscribers.
Propel is part of Schaumburg, Ill.-based Motorola's Network Management Group. Propel's operations include two wireless communications companies in Mexico — Norcel and Cedetel. The company also operates a handset-distribution business, Wireless Distribution Services, in Israel.
After the IPO, Motorola will own about 84.5 percent of outstanding shares. Motorola plans to divest its interest in Propel by distributing shares during the 12 months following the IPO.
Propel earned $170.4 million in revenues on $16.3 million in operating losses for the six months ended June 30, 2000.
Propel currently owes $532.7 million to Motorola (MOT: Research, Estimates) and must repay some amount for Motorola to complete its divestiture.
On Tuesday, Motorola gained $2.50, or 7.58 percent, to close at $35.50.
Propel plans to trade on Nasdaq under the symbol "PRPL." 
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