Net phone equipment maker lifts IPO price
Sunday, October 15th, 2006When telecommunications hardware company Acme Packet of Burlington goes public today, the company expects to raise more money than it originally bargained for — up to $17 million more.
Article Tools
More:
* Business section
* Latest business news
* Globe front page
* Boston.com
* Sign up for: Globe Headlines e-mail
* Breaking News Alerts
Acme Packet yesterday boosted the price of its initial public offering, from $6.50 to $7.50 a share to $8 to $9 a share. The repricing could let Acme Packet raise a maximum of nearly $103 million from today’s offering.
Not many technology offerings have been increasing their prices of late; indeed, there haven’t been many at all. According to Thomson Financial and the National Venture Capital Association, the third quarter of 2006 was the weakest in three years for high-tech stock offerings. There were only eight, with a total value of $934 million. Acme Packet’s strong prospects are mainly because it caters to one of the tech industry’s hottest segments — next-generation phone systems based on Internet technologies.
Acme Packet’s venture investors, including Menlo Ventures, Advanced Technology Ventures, and Canaan Partners, are betting on the growing popularity of voice-over-Internet-protocol or VOIP telephone networks. These are systems that use Internet technologies to carry voice telephone calls. VOIP promises phone systems that are far more versatile than traditional systems, and also cheaper and easier to build. Worldwide use of VOIP phone networks grew 83 percent last year, according to British market research firm Point-Topic. Another research firm, TeleGeography of Washington, DC, said that Americans spent $1 billion placing VOIP calls last year, and will spend $8.1 billion on VOIP services in 2010.
Source and more info: boston