Loss-making IP PBX supplier Mitel Networks is to become
a public company and sell shares through an IPO (initial public
offering) in the US and Canada.
The well-established privately owned provider of network and
telecoms kit has not been put off its IPO plans despite its
poor financial performance.
As of 31 January, the company said it had annual sales of $285m
(£167m) and a net loss of $21.9m. This performance was better than
the previous year's, when sales were $251m and a loss of $34m was
made.
Like most networks and telecoms companies, Mitel suffered from
the dotcom boom and bust. But it has recently seen a revival in its
fortunes as new markets opened up. In particular, the strong demand
for voice over IP hardware has generated new sales for Mitel.
The Canada-based company’s IPO is being underwritten by Morgan
Stanley, RBC Capital Markets and Merrill Lynch.
