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ON Semiconductor at $16
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April 27, 2000: 7:34 p.m. ET
ON Semiconductor prices 30M shares at middle of range, raises $480M
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NEW YORK (CNNfn) - ON Semiconductor raised $480 million Thursday, pricing 30 million shares for its initial public offering at $16, the middle of its range.
ON Semiconductor took a tip from AT&T Wireless (AWE: Research, Estimates), which also priced in the middle and performed well on its first day of trading in tough IPO conditions.
Phoenix-based On Semiconductor, which will trade as ONNN on the Nasdaq, seems to be the one company analysts expect strong performance from in a week where other companies either delayed or withdrew their IPOs.
"ON Semiconductor is going to do very, very well," said John Fitzgibbon, IPO analyst with RedHerring.com. "It has income, it has a p/e ratio."
Fitzgibbon said a big company in a strong sector should perform well for investors.
In 1999 ON Semiconductor had revenue of nearly $1.8 billion, with earnings of more than $59 million according to IPO.com. The lead underwriter for the deal is Morgan Stanley Dean Witter. The company was once a wholly-owned subsidiary of Motorola Inc. (MOT: Research, Estimates)
ClientLogic Corp., however, decided the market was too unsteady for its offering and delayed pricing of its stock indefinitely.
The deal, underwritten by Salomon Smith Barney, was expected to raise $200 million with 20 million shares priced between $9-$11. ClientLogic, a marketing technology unit of Toronto conglomerate Onex Corp., was to be traded under the symbol OCX. The company cited "the unusually poor conditions in the technology sector" and said it would price when the technology sector "settles down."
But those poor conditions did not hurt Metawave Technologies Corp. on its first day of trading. The company cautiously priced it 6.25 million shares at $9, below its range of $11 to $13, but the stock jumped more than 50 percent, rising 4-9/16 to 13-9/16.
Metawave (MTWV: Research, Estimates) raised just over $56 million with its offering and now has a market cap of just under $85 million. Merrill Lynch, Salomon Smith Barney, and U.S. Bancorp Piper Jaffray underwrote the deal.
Redmond, Wash.-based Metawave provides smart antenna systems for wireless network operators facing capacity constraints.
-- from staff and wire reports 
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