Wintegra adds underwriters on revised prospectus

Presumably, the large number of underwriters for Wintegra's IPO is because they believe that the shares will sell like hotcakes.

Fabless network processors developer Wintegra Inc. has updated its prospectus, and added three underwriters, bringing the number to five. The company plans to raise $115 million in its IPO on Nasdaq.

Deutsche Bank Securities Inc. and Barclays Capital Inc. will be the lead underwriters, and Oppenheimer & Co., Roth Capital, and Needham & Co. will be the other underwriters. Last month, in its prospectus, Wintegra listed Deutsche Bank Securities and Barclays Capital as the underwriters, two of the leading underwriters in the post-financial crisis world. Wintegra is undisturbed by the severe chill that has gripped the primary market in the past month.

Five underwriters for a mid-sized IPO like the one Wintegra is planning is quite unusual. Eyeblaster Inc., which is planning an IPO of a similar size, is using four underwriters: two lead underwriters, a secondary underwriter, and an additional, unknown firm, Broadpoint Capital Inc., as an additional underwriter.

Presumably, the large number of underwriters for Wintegra's IPO is because they believe that the shares will sell like hotcakes. But that is no certainty, giving the lagging primary market on Wall Street in the wake of the euro crisis.

Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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