Clearwire Sets Its IPO Terms

Clearwire has set the terms for its proposed IPO of 20 million shares at a price range of $23.00 to $25.00 per share, plus an additional 3 million for overallotments.  The final underwriting group has been deemed as Merrill Lynch as the lead with co-lead underwriters Morgan Stanley and J.P.Morgan.  Others in the syndicate are Wachovia, Bear Stearns, Citigroup, Jefferies, Raymond James, ThinkEquity, and Stifel Nicolaus.

This one is split because the product has developed a core and there is strong demand for the IPO, but the one issue that may act as a quasi-cap is the ongoing need for more capital.  It will have to raise more and more cash to fund ongoing expansion plans, so just know going in that the Clearwire will be selling more shares and debt in the relatively near-future.  This one is supposed to be well received though and may still command a premium because of the McCaw founder and the hot technology and backers.

Here is the last report we gave on it from January 30, and there is the prior filing on it at the end.

Jon C. Ogg
February 14, 2007