Canadian telecom company Mitel Networks Corporation yesterday filed for an IPO of up to $230 million. The company, which provides integrated communication services primarily to SMBs, said it plans to use proceeds from the offering to reduce debts by repaying its revolving credit and loans, and for working capital and general corporate purposes, including potential acquisitions.
Mitel’s IPO would be the largest ever initial public offering by an Ottawa-based company, according to Ottawa Citizen. No pricing terms were disclosed.
Mitel Networks reported revenue of $735.1 million in the 2009 fiscal year ended April 30, up 6.2 percent from $692 million from the same period a year ago. It reported a net loss of $193.5 million, compared with a net income of $12.6 million in the same period a year earlier. Apart from 2008, Mitel Networks has recorded net losses every year since it was incorporated in 2001, according to regulatory filings.
According to Ottawa Citizen, Mitel had 2,408 employees in October, down 500 in the past two years.
This is Mitel’s second attempt to offer shares to the public since 2006, when efforts were put on hold due to the company’s acquisition of business communications company Inter-Tel (August 2007). BofA Merrill Lynch, J.P. Morgan, and UBS Investment Bank are the lead underwriters of this second attempt.
Yesterday, we took a deep look at ReachLocal’s plans to go for a $100 million IPO in 2010.