Motorola takes a hit on Freescale IPO price

Shares to offered at a third off

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Motorola has set the price at which it will offer the public share in its chip business, Freescale. But the price, $13, is two-thirds the price it was originally anticipated to be.

The price downgrade follows a cooling of the market toward tech stocks, most notably Merrill Lynch's bearish report on the chip industry issued last week. In that respect, Motorola's timing could have been better.

Motorola should gain at least $1.58bn from the sale, of which it plans to keep $1bn, the rest going to Freescale. However, the fledgling chip company will be able to borrow up to $1.25bn from its soon-to-be former parent.

The $13 price-point is somewhat lower than the $17.50-19.50 Motorola had previously flagged. Such a price would have yielded $2.13-2.37bn - rising to $2.45-2.73bn if 18.2m shares put aside in case the IPO is oversubscribed are sold. Some 121.6m shares make up the initial, Class A allotment.

Motorola will retain the existing, Class B stock, amounting to 92 per cent of the voting stock, before releasing it to its own shareholders later this year. ®

Related stories

History repeated as Apple slams CPU supplier
Wall Street bears take a swipe at chip stocks
Motorola files for Freescale IPO
Freescale Q1 income soars
Motorola renames chip division Freescale

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story


Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.