NEW YORK-A pair of smooth operators from Europe eased into the choppy initial public offering market last week, although they had to trim their sails a bit in order to make the journey.
Telefonica Moviles, Madrid, raised about $2.8 billion in an IPO of 300 million shares, priced at about $9.33 each, near the bottom of the expected range of $9.31-$11.47.
Banco Bilboa Vizcaya Argentaria S.A. was lead underwriter for the Telefonica S.A. wireless unit offering, which included 90 million American Depository Shares traded on the New York Stock Exchange.
The wireless unit of Spain’s Telefonica S.A. went to market Nov. 21, one day after Telekom Austria became the first company from that country to trade on the Big Board.
The Austrian government, which sold a 25-percent stake in the carrier, had expected to sell 140 million shares in a range of $7.64-$10.19 through an IPO lead-managed by Merrill Lynch & Co. The offering of 128.8 million shares priced at the bottom of the range, raising about $980 million, all earmarked for the federal treasury.
Telekom Austria has 3.3 million access lines. The Mobilkom division has 2.7 million customers for its dual-band GSM and General Packet Radio Service wireless services. The carrier also has a data communications and an Internet services division.
Telefonica Moviles has about 19.4 million customers in all of its markets, including interests it owns or has agreements to buy in Peru, Argentina and Mexico.
Net proceeds of its initial public offering will go toward repayment of a loan from its parent for purchase of a third-generation wireless license in Germany.
