NEW YORK-Teligent Inc. went public Nov. 21 with a 5.5 million-share initial public offering of common stock priced at $21.50 per share, near the high end of the expected $19-$22 price range.
The Vienna, Va., upstart with big-name backing, plans to build a point-to-multipoint wireless network to compete for business customers with local wireline telephone companies and with other wireless competitive local exchange carriers, like WinStar Communications Inc.
Concurrently, the carrier sold $400 million in 10-year debt securities. The sales of debt and equity, lead managed by Merrill Lynch & Co. Inc., were contingent upon each other.
Because it went public, Teligent also gained access to equity totaling $160 million pledged by three major companies: The Associated Group Inc., now a 41-percent owner; Telecom Ventures L.L.C., a 33-percent owner; and Nippon Telephone and Telegraph Corp., an 11-percent owner.
Teligent said it plans to begin Phase I deployment efforts late this year in Dallas, Los Angeles and Washington, D.C. Phase I, scheduled to be completed by mid-1998, “involves testing of equipment from multiple vendors, including Northern Telecom Ltd., Lucent Technologies Inc., P-Com Inc., Netro Inc. and Broadband Networks Inc.”
The carrier has 24 GHz fixed wireless licenses in 74 metropolitan areas. It anticipates building out its network in 10 markets next year, in 20 additional markets in 1999 and in 34 new markets by 2001. The company plans to offer voice, video, Internet and high-speed data services.
