News

CSR to go public with share offering ...

Exactly how I'm supposed to do this isn't clear; but the news that Cambridge Silicon Radio is offering its shares at two quid each on the London stock exchange, is supposed to stay secret from people in Australia, Canada, Japan or the USA. So if you live there, don't read this:

CSR, probably the leading Bluetooth silicon provider, is going public, nonetheless.

The secret seems to have leaked out: John Hodgson, CEO of CSR, said: "We are delighted with the very strong levels of interest and participation in the Offer from investors all over the world."

Tsk. Even in Australia, Canada, Japan or the USA?

He added: "It demonstrates that investors recognise the potential within CSR and have confidence in our ability to drive future growth."

Hodgson added that he was also particularly pleased that so many of the company's employees participated in the Employee Offer.

"We look forward to life as a listed company as we believe it will help us consolidate our position in the fast growing Bluetooth market."

Highlights of the Offer as released by CSR are:

The Offer comprises an aggregate of 39,371,539 shares, corresponding to a total offer size of £78.7 million. Of this, 19,443,847 shares will be new ordinary shares issued by CSR.

Based on the Offer Price of 200 pence per share, and the number of shares in issue of 120,177,235, the market capitalisation of the Company at listing will be approximately £240 million

The offer attracted very significant demand from quality institutional investors across the world. Shares allocated in the offer have been placed with investors in the UK, Europe, the United States and elsewhere. In response to this strong demand from investors, the size of the offer has been increased by approximately 5.6 million shares (approximately 14%) from the size originally set by the Company at the start of the offer process. This was achieved by increasing the number of shares sold by existing shareholders. The number of shares issued by the Company, and the number sold by the executive directors, remains unchanged.

The Employee Offer was also successful, with around 75% of employees applying for shares.

Conditional dealings will commence at 0800 on 26 February 2004 on the London Stock Exchange. It is expected that the listing will become effective and unconditional dealings will commence at 0800 on 2 March 2004 under the ticker symbol CSR.L.

In connection with the offer, CSFB has been granted an option (the "Overallotment Option") by certain shareholders selling in the offer to purchase up to an additional 5,072,308 shares at the Offer Price to cover over-allotments, if any, and to cover short positions arising from stabilisation transactions. The Over-allotment Option will be exercisable for a period of 30 days after the admission of the ordinary shares to the Official List of the United Kingdom Listing Authority.

Credit Suisse First Boston ("CSFB") acted as sole bookrunner and sponsor for the flotation. CSFB and Cazenove acted as joint lead managers and will act as joint brokers to CSR. SG Cowen acted as US co-manager.