Clearwire Corp., a wireless Internet services provider founded by cellular phone pioneer Craig McCaw, raised $600 million in its initial public offering which valued the entire company at just over $4 billion.
Clearwire is rolling out a next-generation wireless technology known as WiMax, which offers higher speeds and greater range than today's Wi-Fi. WiMax is also seen a potential threat to cellular carriers and the investments they've made in their wireless infrastructure.
The company said Thursday it sold 24 million shares priced at $25 each on Wednesday night. The price was at the upper end of the its expected range of $23 to $25 each.
The shares begin trading Thursday on the Nasdaq Stock Market under the ticker symbol "CLWR."
The Class A shares being sold represent about 14.8 percent of the company's combined total of nearly 161.6 million Class A and B shares.
Proceeds from the sale are projected to total $559 million after underwriting fees and the company said it will use them for market and network expansion, spectrum acquisitions and general corporate purposes.
Clearwire was founded in October 2003 by McCaw, a Seattle-based billionaire, who founded McCaw Cellular, which was eventually acquired by AT&T.
In July 2006, chip maker Intel Corp.'s venture capital arm agreed to invest $600 million in Clearwire as part of a $900 million deal, which included mobile phone maker Motorola Inc.
McCaw would own a nearly 49 percent voting stake and 34 percent equity stake in the company after the sale.
The underwriters, which include Merrill Lynch & Co., Morgan Stanley, and J.P. Morgan Securities, have been granted the option to purchase up to an additional 3.6 million shares of common stock to cover any over-allotments.
If the underwriters exercise their over-allotment option in full, the company will receive additional proceeds of roughly $85 million.
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