NEWARK, N.J.-Fixed-wireless vendor IDT Spectrum Inc. plans to raise up to $57.5 million in an initial public offering. The company said it will use the funds to build a fixed-wireless network in various U.S. markets, including New York, Los Angeles, Chicago, Washington D.C., and San Francisco.
IDT purchased Winstar Communications Inc.’s fixed-wireless spectrum holdings for $42.5 million after Winstar went bankrupt in 2001. Winstar, along with XO Communications Inc., Teligent Inc. and others, had attempted to break open the fixed wireless market, but found little success.
IDT said it plans to build a fixed-wireless network platform that will integrate its wireless spectrum with its operational management capabilities and a flexible architecture to “serve the specialized backhaul and telecommunications connectivity needs of a variety of customers, such as cellular phone network providers, commercial enterprises, governmental agencies and first-responders.” The company promised reliable, high-bandwidth connectivity at speeds of up to 622 megabits per second.
Instead of a standard IPO, IDT said it plans to conduct an auction-style offering. The company said the public offering price and allocation of shares will be determined primarily by an auction process conducted by its underwriter and other securities dealers participating in the offering.
In the first nine months of this year, IDT recorded $1.3 million in revenues and a net loss of $4.3 million. The company filed for the GIGZ ticker symbol.
