NEW YORK (AFX) - Globalstar Inc., which offers voice and data services via satellite, said Monday it is planning an initial public offering of stock.
The company has not yet decided on an IPO price. But it said in an S-1 filing with the Securities and Exchange Commission Monday that it plans to use the proceeds, along with borrowings, to help pay for its next generation of satellites, which should cost between $1 billion and $1.2 billion. In the interim, Globalstar plans to launch eight more satellites for its existing network, which should cost about $110 million.
Globalstar already has 43 satellites in orbit, offering communications services to government agencies, businesses and other customers in over 120 counties. It had about 204,000 customers at the end of March, a 41 percent increase from the previous year.
The company said it expects demand to grow as customers seek more reliable communications in the wake of the September 11, 2001 terrorist attacks, Asian tsunami and Hurricane Katrina.
Globalstar had $22.5 million in net income in the first quarter of 2006 on $30.3 million in revenue, including a $21.4 million income tax benefit. For the full year of 2005, the company recorded $18.7 million in net income on $127.1 million in revenue.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.