Opnext raises $254 million in IPO
EATONTOWN, NJ-Optical networking component maker Opnext did much better than it had expected to in its recently complete initial public offering (IPO).
EATONTOWN, NJ-Optical networking component maker Opnext did much better than it had expected to in its recently complete initial public offering (IPO). Back in November, when the IPO was first announced, the company said it hoped to raise $150 million in its first stock offering (see Optoelectronics Report, Nov. 15, 2006). But when all was said and done, investors ponied up $254 million for 16.9 million shares of Opnext at $15/share.
Opnext, which will list on the Nasdaq Global Market under the symbol “OPXT,” plans to use $25 million for future capital expenditure, $25 million for R&D (both new and existing products), and about $50 million for the repayment of short-term loans. The company said it may also use a portion of the net proceeds for the acquisition of, or investment in, businesses, technologies, or products that complement its existing business.
Opnext was founded in 2000 as a spin-off of Hitachi; following the IPO, Hitachi owns 45.7% of Opnext’s stock (or 43.9% if the underwriters’ over-allotment option is exercised in full). Most of the laser and photodiode chips that Opnext uses in its transceiver modules for optical communications are manufactured at the former Hitachi facilities in Komoro and Totsuka, Japan.