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Motorola unit files for IPO
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June 27, 2000: 7:58 p.m. ET
Propel to offer 20 percent of common stock; Genuity prices low
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NEW YORK (CNNfn) - Motorola wireless subsidiary Propel filed an initial public offering registration with the Securities and Exchange Commission Tuesday.
Motorola (MOT: Research, Estimates) said up to 20 percent of Propel's shares would be offered to the public in the debut. It noted that Goldman Sachs and Morgan Stanley Dean Witter will handle the deal.
Propel provides wireless services through 17 operating companies in countries including Mexico, Brazil, Egypt, Argentina, Pakistan, Israel and Hong Kong (China). The company is part of Schaumburg, Ill.-based Motorola's Network Management Group.
These companies provide service to 7.6 million customers according to the filing, and from these companies Propel had revenue of $1.2 billion in 1999.
Propel said Motorola intends to divest its entire interest in the company at a later date.
The company did not say how much it plans to raise with the IPO or how many shares would be on offer. These details should follow in later filings.
The last large wireless IPO to hit the market was AT&T Wireless' debut, which raised $10.6 billion in April.
Genuity prices cautiously
On an excellent day for debuts, GTE's Genuity decided to price on the side of caution, raising $1.9 billion.
The company priced 173.9 million shares at $11 per share, below its expected range of $12 to $14.
Burlington, Mass.-based Genuity is a business Internet service provider and data carrier which GTE (GTE: Research, Estimates) was forced to divest in order to clear regulatory hurdles in its $64.7 billion merger with Bell Atlantic (BEL: Research, Estimates).
There is a complex aspect to the deal, though. After GTE and Bell Atlantic merge to become Verizon Communications, and certain regulatory hurdles are completed, the new company can repurchase its class B stock and, according to analysts, will regain an 80 percent stake in the company.
Genuity earned more than $750 million in 1999, but lost nearly $627 million. It will trade under the symbol "GENU." 
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Motorola
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