June 22, 2004 – Freescale Semiconductor Inc., the chipmaking arm of Motorola Inc., has unveiled its long-awaited plans for its IPO, expected to be worth roughly $2.6 million.
The company stated it will sell 121.6 million shares for a price range of $17.50-$19.50/share, including overallotments to underwriters. Motorola announced its plans to spin off the division late last year.
Net proceeds would be approximately $2.1-$2.5 billion (based on overallotments); after distribution to Motorola, Freescale would have about $750 million in net cash and equivalents for general corporate purposes.
The company reported a profit of $106 million in 1Q04 on sales of $1.4 billion