Mitel Networks (MITL)

[BSWB]

Mitel Networks shares sag after IPO priced low
Canadian communications co. Mitel Networks shares slipping after IPO priced below expectations


On Thursday April 22, 2010, 12:24 pm EDT
NEW YORK (AP) -- Shares of Canadian communications company Mitel Networks are sagging after the IPO priced far below expectations, raising $147.4 million.

Mitel Networks, based in Ottawa, Ontario, sold shares for $14 apiece and opened even lower, at $12.75. They had been expected to price shares at $18 to $20 each, raising about $200 million at the midpoint.

Mitel has posted an annual profit only once since it was incorporated in 2001, and it had warned investors that several of its competitors had better-established brands, broader customer bases and greater resources.

The shares, trading under the symbol "MITL," shed $1.30, or 9.3 percent, to $12.70.