chello Announces Share Price Range for IPO
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[May 19] European broadband services company chello broadband N.V. announced Friday the price range for shares it proposes to sell in its IPO on the Amsterdam and Nasdaq markets.
chello will issue nearly 27 million new ordinary shares, or around 10 per cent of the company, for between 13 euros and 17 euros per share -- $11.88 and $15.53 per American Depositary Share (ADS) -- with the final price being set "on or about" May 30.
The chello shares will trade under the symbol CHLO at a starting date expected to be May 31.
Two companies are buying into chello in a private placement. They are Microsoft and Liberty Media, each of which is taking over 9 million shares, around 7 per cent of the company.
The number of people subscribing to chello services has grown from 28,000 in April 1999 to 171,000 in March 2000. The business currently derives revenue from monthly subscription fees but anticipates generating substantial income from e-commerce and advertising in the future.
Announcing the share price range, Roger Lynch, president and chief executive officer of chello, said the offering was an important strategic step in the company's development.
"We believe that broadband is the future of the Internet, and this step allows us to accelerate our commitment to growth," said Lynch.
In Europe, chello currently operates in Austria, Belgium, France, The Netherlands, Norway and Sweden. It has established its own broadband network named AORTA, connecting Amsterdam, Frankfurt, Paris, Brussels and London with a 2.5 gigabits per second link.
Recently, chello announced plans for services in Germany via the EWT/TSS Group cable network which is currently being acquired by parent company UPC.