Third time lucky

18 April 2007 By Robert Cyran Follow @rob_cyran

The Vonage and Clearwire IPOs cratered. Now the largest telecom float in three years discount cell firm MetroPCS is nearing launch. Luckily for investors, this $1bn float should go far more smoothly. MetroPCS has a history of profitability and is growing quickly.

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MetroPCS plans to sell 50m shares this week in an indicated range of $19 to $21 per share. At the midpoint, this would raise $1bn and give the cellular operator a market capitalisation of $6.9bn. This would be the largest initial public offering among telecom and technology companies since 2004.

MetroPCS had sales of $1.5bn and operating profits of $237m in 2006. The company offers unlimited cell phone service to customers on a monthtomonth basis for a flat fee.

Bear Stearns, Bank of America, Merrill Lynch and Morgan Stanley are the underwriters. The stock begins trading April 19.

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