As “Globes” first reported, fabless semiconductor start-up Wintegra is moving swiftly towards Nasdaq, after posting over $20 million in sales in 20005. Sources inform ''Globes'' that the company has chosen underwriters for its IPO, in which it hopes to raise $75 million, at a company value of $300 million, after money.
Goldman Sachs (NYSE:GS) and JP Morgan Chase & Co. (NYSE:JPM) will lead the issue, while Goldman Sachs will be the sole bookrunner. Wachovia and Thomas Weisel Partners, represented in Israel by Magnolia Capital Partners, will be the secondary underwriters. Wachovia has never had substantial business in Israel. Its first major deal was to have been an issue by Plasson Industries Ltd. (TASE: PLSN) on Nasdaq, which has apparently been cancelled or at least deferred.
“Globes” ranked Wintegra fourth in its 2005 list of the ten most promising start-ups. The company develops the WinPath family of access processors, which makes it possible for communications infrastructure equipment suppliers to migrate to next-generation access networks with a single chip solution.
Market sources believe that, although Wintegra will be a fairly small IPO, Goldman Sachs made a strong play to lead the issue. senior Goldman Sachs investment bankers were even flown to Israel to meet the company’s managers and directors.
Wintegra has raised $42 million since it was founded. Its investors include Concord Ventures, Genesis Partners, Magnum Communications Fund, Plenus Venture Lending Fund, Texas Instruments Ventures, Taiwan’s China Development Industrial Bank (CDIB), Marvell Technology Group (Nasdaq: MRVL), and Ron Zuckerman. Avigdor Willenz, the founder of Galileo Communications (sold to Marvell) is a member of Wintegra’s board.
Wintegra had $9.5 million in revenue in 2004 and is expected to have $20 million in 2005. The company currently has 100 employees, mostly in Ra’anana. Kobi Ben-Zvi is chairman, president and CEO. Most of the company’s sales are to large international communications equipment makers, including ECI Telecom Ltd. (Nasdaq: ECIL), Ericsson (Nasdaq:ERICY; SAX:ERIC) Fujitsu (Tokyo:6702), LG Electronics (KSX:66570), Lucent Technologies (NYSE:LU), Motorola (NYSE:MOT), and RAD Data Communications Ltd.
Published by Globes [online], Israel business news - www.globes.co.il - on January 12, 2006