Saifun Semiconductors (SFUN)

[midastouch017]

Three months after IPO, Saifun preparing for secondary offering

08.2.06 | 09:15 By Ami Ginsburg

Three months after floating on Wall Street, Saifun Technologies (Nasdaq: SFUN) is gearing up for a secondary issue. The memory chips maker has not yet decided how much to raise but market sources think it has its eyes on around $300 million.

Mainly, existing shareholders would be cashing out. Saifun president Kobi Rozengarten, who is presently in San Francisco, refused to comment for this report.

In November 2005, Saifun raised $135 million through selling 5.75 million shares for $23.50 each. Lehman Brothers led the offering with the aid of Deutsche Bank and CIBC.

The offering was oversubscribed and on its first day of trade, Saifun stock reached $36. It has since pulled back a little, to $33.40, representing a company value of $960 million.

The reason for the secondary offering is mainly to avoid a glut. A large number of shares gets released from lockup in May 2006, which would otherwise create great pressure on the share price.

Insofar as could be ascertained, the offering would take place in April, right before the release, but it might be earlier, depending on developments in the U.S. capital markets.

The biggest Saifun shareholder is its founder, Boaz Eitan (40%). Next is Clal Industries and Investments (TASE: CII) with a 12% interest and the Concord and Gemini venture capital funds.

Some of the shareholders, including the venture capital funds and certain company officers, hold stock options exercisable at low prices.

Gemini has been invested in Saifun for eight years but both funds feel urgency to cash out and move on to focus on sequel funds.

http://www.haaretz.com/hasen/spages/680359.html

Dubi