NEW YORK (AFX) - IPG Photonics Corp., a maker of fiber-optic lasers and signal amplifiers, expects to raise about $81.8 million in its initial public offering next week, with plans to use a good chunk of the proceeds to repay debt.
IPG's lasers are used in materials processing such as semiconductor memory repair, and in making everything from razor blades and pacemakers to computer disks. Doctors and dentists use them for surgery, vision correction and cosmetic procedures such as skin resurfacing. Its amplifiers are used by communications companies offering video, Internet and phone services.
The company is offering 9 million shares at an expected price range between $13.50 and $15.50 each. The anticipated proceeds are based on the midpoint of this range.
IPG said it plans to use $22.1 million of the proceeds to repurchase warrants for series B preferred stock. In addition, the company plans to use nearly $30 million to repay loans and credit facilities from a variety of sources.
TA Associates Inc., which beneficially owns 2 million of IPG's series B preferred stock, will own 9.5 percent of the company's shares after the IPO is completed. TA, IPG said, will receive about $11.6 million of the proceeds of the offering from the buybacks.
The Oxford, Mass.-based company's shares are expected to trade under the symbol 'IPGP' on the Nasdaq.
The underwriters for the offering are Merrill Lynch, Lehman Brothers, Needham & Co., Jefferies & Co. and Thomas Weisel Partners.
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© 2006 AFX News
