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CoSine garners $230M
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September 25, 2000: 6:58 p.m. ET
Networking company sells 10 million shares at $23; Southern boosts IPO
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NEW YORK (CNNfn) - CoSine Communications raised $230 million, more than expected, when it priced its initial public offering Monday.
CoSine Communications sold 10 million shares at $23 each via underwriters led by Goldman Sachs. The deal has already received one price boost. CoSine had planned to sell 10 million shares at $20-to-$22 each that was raised last week from $15-to-$17 which itself up from the originally planned $13-to-$15 range.
CoSine provides the switches and software that let network services providers offer secure Internet services.
The company has a strong customer list, including Qwest Communications (Q: Research, Estimates), but competes against powerhouses such as Nortel Networks Corp. (NT: Research, Estimates), Cisco Systems (CSCO: Research, Estimates) and Lucent Technologies (LU: Research, Estimates) in the network infrastructure market. The startup has a negligible profit history with revenue of $11.3 million on net losses of $57 million for the six months ended June 30.
CoSine plans to trade under the Nasdaq symbol "COSN."
Southern boosts IPO
Southern Energy Inc. boosted the price range of its expected IPO to 58 million shares at $18-to-$20 from the expected range of $15-to-$17. Goldman Sachs and Morgan Stanley Dean Witter are lead underwriter on the deal.
Atlanta-based Southern Energy provides electrical generation, distribution and management services. The company has a portfolio of power plants that total 12,652 megawatts of generation capacity including plants in the United States, Europe, the Asia-Pacific region and the Caribbean, and South America. Southern Energy owns a 26 percent stake in Bewag AG, an electric utility serving 2.1 million customers in Berlin, Germany.
Southern Energy's parent company, Southern Co., will hold an 82.4 percent stake after the IPO. Southern Co. plans to complete the spinoff of Southern Energy by distributing the remaining shares to Southern shareholders within 12 months of the IPO.
Southern Energy plans to trade on the New York Stock Exchange under the proposed symbol "SOE." 
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