NEW YORK (CNNfn) - Agere Systems Inc., the microelectronics unit of Lucent Technologies, finally priced its much anticipated IPO Tuesday, raising 3.6 billion, and setting the stage for the years biggest debut.Agere Systems sold 600 million shares at 6 each via lead underwriter Morgan Stanley Dean Witter.
The company had planned to sell 600 million shares at 6-to-7 each. CNNfn.com first reported news that Agere would price Tuesday, which surprised many as the deal was set for Wednesday. Allentown, Pa.-based Agere designs and makes optoelectronic components for communications networks and integrated circuits for computer equipment, and is a leader in sales of communications semiconductors. Agere plans to trade under the New York Stock Exchange symbol AGR.A. The Agere IPO is so dependent on the health of Lucent and Agere, said Ben Holmes, president of IPOpros.com. Holmes predicts that the Agere IPO will trade flat and questioned how the offerings lead underwriter, Morgan Stanley, could support the IPO since it holds a green shoe option. Morgan has the right to buy and then sell 90 million Agere shares, after the IPO, in exchange for some Lucent debt. Given the size of Morgan Stanleys position and the impetus to sell these shares, it will take a tremendous amount of aftermarket buying to lift this deal, Holmes said. Shares for Lucent Technologies ( LU: Research, Estimates ) lost 29 cents to 11.70 Tuesday. QK pulls IPO Separately, QK Healthcare finally withdrew its planned IPO late Monday. QK Healthcare, a wholesale distributor of selected healthcare products, pulled the offering because of poor market conditions, the company said in a letter to the Securities and Exchange Commission. The QK IPO had been on calendar throughout early March, postponed last week and then formally pulled the offering Monday. Ronkonkoma, N.Y.-based QK had planned to sell 11 million shares at 14-to-16 each, down from its plan to offer 15 million shares, via lead underwriter Lehman Brothers. QK had expected to trade under the New York Stock Exchange symbol KRX. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of SP Dow Jones Indices LLC and have been licensed for use to SP Opco, LLC and CNN. Standard Poors and SP are registered trademarks of Standard Poors Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices SP Dow Jones Indices LLC 2018.
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