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Instinet lowers IPO range
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April 26, 2001: 12:40 p.m. ET
Reuters unit modifies IPO terms, lowers range to $11.50-to-$13.50
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NEW YORK (CNNfn) - Instinet Group Inc. slightly lowered the price range of its planned initial public offering and now anticipates raising as much as $398.25 million.
Instinet now plans to offer 29.5 million shares at $11.50-to-$13.50 each via lead underwriters Credit Suisse First Boston and Deutsche Banc Alex. Brown. On April 3, the company could have raised as much as $413 million when it filed to sell 29.5 million shares at $11-to-$14 each.
Instinet originally filed on Feb. 8 to raise $450 million.
The Instinet IPO is expected in mid-May, underwriters on the deal said.
New York-based Instinet operates one of largest electronic communication networks (ECN) where buyers and sellers can trade stock anonymously. Customers, such as institutional investors, can access securities markets globally, including exchanges in Zurich and Hong Kong as well as the Nasdaq. Instinet competes against other ECNs such as Archipelago and The Island ECN.
Instinet had $148 million income on $1.4 billion revenue in fiscal 2000.
Instinet is currently a unit of Reuters Group PLC. After the IPO, London-based Reuters (RTRSY: down $0.44 to $83.66, Research, Estimates) will own 87.5 percent of common stock. Instinet currently owes Reuters $200 million and will take $150 million from its IPO proceeds to pay off much of the debt.
Instinet plans to trade under the Nasdaq symbol "INET." 
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