Mitel shrugs off losses and files for IPO

Loss-making IP PBX supplier Mitel Networks has filed to sell shares in the company through an IPO (initial public offering) in the US and Canada.

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.

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