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Asia Global fizzles
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October 6, 2000: 6:00 p.m. ET
Once the week's largest IPO, pan-Asia telecom pricing level moribund
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NEW YORK (CNNfn) - After several fits and starts, Asia Global Crossing priced its once-massive public offering below its expected range late Friday, but drew little enthusiasm from the new-issues market.
The offering from the pan-Asia telecommunications carrier, a subsidiary of Web hosting company Global Crossing Ltd., closed its first day at $7.38 per share, up just slightly from the $7 level where it priced 68 million shares earlier in the day, raising $476 million.
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Analysts cast doubts on the offering earlier in the week after Asia Global Crossing's underwriters, Goldman Sachs & Co., slashed the company's expected pricing range from $14-to-$16 per share to between $9 and $11, and reduced the number of available shares from 62.2 million to 53 million. In all, the company changed either its price range or share number four times.
The company ultimately sold 68 million shares at $7 per share, raising only 60 percent of nearly $800 million it first anticipated.
Asia Global Crossing (AGCX: Research, Estimates) expects to partner with GlobalCenter, a specialist in hosting Internet site infrastructure and managing e-commerce. GlobalCenter, a subsidiary of Web hosting company Global Crossing Ltd. (GBLX: Research, Estimates), was purchased last week by Exodus Communications (EXDS: Research, Estimates) in a $6.5 billion deal.
The Bermuda-based company was formed by a 1999 joint venture between Global Crossing, Microsoft Corp. (MSFT: Research, Estimates) and Softbank Corp. The company hasn't provided revenue figures, but did earn an estimated $20 million last year. 
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Asia Global Crossing
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