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ShoreTel IPO Booms Despite Lawsuit |
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Written by Adam Gosling
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Wednesday, 04 July 2007 |
Despite facing a patent infringement lawsuit filed by competitor Mitel which delayed last weeks planned Initial Public Offering of privately held VoIP PBX maker ShoreTel the company did make it on to the NASDAQ to an enthusiastic reception.
The company announced the pricing for stock in its IPO. The company said it would sell up to 7,900,000 shares of its common stock at
a price to the public of US$9.50 per share. In addition, ShoreTel says it has granted the underwriters a 30-day option to purchase up to an additional 1,185,000 shares of common stock.
ShoreTel's common stock began trading on the Nasdaq under the ticker "SHOR" reaching a price of US$13 before falling back slightly to trade in the US$12 range by early afternoon on the first day of trading.
ShoreTel had re-priced its offer to the public after Canadian VoIP company, Mitel Networks Corporation, accused it of infringing on four of its IP communications patents. At the end of June
Mitel filed a
lawsuit in a Texan District Court delaying the planned IPO and prompting ShoreTel to reduce the price from US$10.50 to US$9.50.
The legal threat appears not to have caused too much concern for investors which traded enthusiastically up until the price reached its peak. By 1PM more than 5 million shares had been traded.
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