[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.
A subsidiary of United Pan-Europe Communications N.V.
which in turn is owned by UnitedGlobalCom, Inc.,
chello broadband has been pioneering high-speed
Internet access in Europe, with other ventures in
Australia, New Zealand and Chile.
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.