IPG Photonics Raises $148.5M in Market Debut

An initial public offering from IPG Photonics Corp., an Oxford, Mass., maker of fiber lasers and amplifiers for a uses from welding to surgery, on Tuesday raised $148.5 million as it priced above the expected range, according to an underwriter quoted by Reuters today.

The 9-million-share offering, which represents about a 21 percent stake in the company, sold for $16.50 per share compared with an estimated $13.50 to $15.50 forecast range. IPG sold about 6.2 million shares while selling stockholders, including chairman and CEO Valentin Gapontsev and members of the board, sold about 2.8 million shares, according to a a document filed with the US Securities and Exchange Commission.

Shares rose 52 percent at $25, before trimming gains to 36 percent, or $6, in morning trading on the Nasdaq, Reuters said.

Underwriters, led by Merrill Lynch & Co. and Lehman Brothers, will have the option to buy another 1.35 million shares to cover overallotments, according to the filing.

Beginning on Dec. 13, 2006, the shares are expected to be quoted on the Nasdaq Global Market under the symbol “IPGP.” 6,241,379 shares are being sold by the Company and 2,758,621 shares are being sold by existing stockholders in the offering.

IPG said it will receive net proceeds from the offering of approximately $93 million and that it intends to use the net proceeds from the offering to repurchase its series B warrants, to repay certain debts and for general corporate purposes.

The underwriters have been granted a 30-day option to purchase from certain existing stockholders up to an additional 1,350,000 shares of common stock to cover over-allotments, if any.

"If the underwriters exercise their over-allotment option, the selling stockholders will receive net proceeds from the sale of additional shares pursuant to such exercise," the company said. "IPG Photonics will not receive any proceeds from the exercise of the over-allotment option."

Merrill Lynch & Co. and Lehman Brothers have acted as joint book-running managers for the offering. Needham & Company LLC, Jefferies & Company and Thomas Weisel Partners LLC are co-managers of the offering.

The offering price gives the company an initial market capitalization of almost $718 million.

For more information, visit: www.ipgphotonics.com

(See also IPG Photonics Turned Fiber Bust Into Laser Boom)