(If you don’t get the reference, watch below…)
Back in December, I was interviewed by TMC CEO Rich Tehrani and made a bunch of predictions, but I have to say that I missed the onslaught of deal making that’s now happening, (Did get the part about Social media and geo-location right, however…)
BroadSoft (www.broadsoft.com) announced yesterday that it filed an IPO for up to $103.5 million in common stock. Don’t expect any big news out of them – filing means the company goes into a quiet period and has to be verrrrrry careful about what it says.
I haven’t had a chance to pull up the prospectus paperwork and see what kind of dirty laundry is buried in the SEC filing, but the AP reports that the company has lost money every year since it was founded in 1998 and lost $7.8 million on sales of $68.9 million in 2009. – Gotta take that with a grain of salt, since it picked up losses when it swallowed Sylantro and most likely the other acquisition bits it has done over the years as it cornered the market on application server software.
Goldman Sachs and Jefferies are the lead underwriters. Goldman is a pretty conservative firm when it comes to underwriting, so there’s likely to be some warm-fuzzies when the company starts its road show to sell the stock to major financial houses around the globe.
Date of the IPO is likely going to be later this year (obviously), barring the sky starting to fall again in financial terms, but you figure the first “open window” for the event is 90 to 120 days from now after the SEC looks at the initial document and then gets revisions.
Price of the stock isn’t really set until the evening before the IPO. The company has to go on a “road show” to sell large chunks of the stock to institutional buyers, who then vow to prop up the stock by buying up if the pricing starts to dip down within the first 6 months or so. If a lot of financial firms want to buy the stock, this drives the price up.
*sigh* And I haven’t even had a chance to write about the Radisys/Pactolus deal and it happened last week! Or how all these deals will lead us into Interesting Times over the next 6 to 8 months, along with the deals still to come.
Yup, expect more in the months to come. Wall Street and VCs are willing to back play now and all the yack-yack-yack about the National Broadband Policy (Hmm, policy announcement, IPO filing – coincidence? Wanna bet?) is only going to encourage a healthy mindset for telecommunications-minded investors.