Spansion Cuts IPO Price
Online staff -- EDN, December 15, 2005
AMD’s flash memory division, Spansion, today cut the offering price of stock in its planned initial public offering (IPO).
The company, which had originally set share price at $16 to $18 per share, has reduced that price to $13 to $14 per share. The change will reduce the net proceeds available to Spansion to about $493 million from the $622 million the company originally had hoped to raise, Spansion said in an amendment to its registration statement filed with the U.S. Security and Exchange Commission.
The company plans to use the proceeds for working capital, capital expenditures and general corporate purposes.
The amendment is only the most recent Spansion has made to its registration statement. The company filed another one in late November, reporting lower net sales for the first nine months of 2005 -- $1.4 billion compared to $1.8 billion for the same period a year ago. In addition Spansion reported an operating loss of $248 million for the first nine months of 2005.
Spansion is 60 percent owned by AMD and 40 percent owned by Fujitsu.
