Clearwire and NextWave plan to go public by early 2007 and have already filed their S-1 forms with the Securities & Exchange Commission. Both companies, which are beset by losses, are banking on WiMax for future profitability.
Clearwire already secured backing from chip manufacturer and WiMax champion Intel and cell phone maker Motorola for its venture. Based on the documents it filed with the SEC, the company, whose shares are likely to go by the symbol CLWR, holds $1.25 billion in cash, equivalents, and short-term investments. Analysts estimate the IPO to generate $400 million for Clearwire.
IPO expert Tom Taulli believes the success of Clearwire’s IPO could generate great interest for NextWave’s public debut. “If Clearwire has a good IPO, then you have a benchmark to work from,” Taulli said. The firm, however, does not see itself gaining a lot of cash from the offering since the transaction only involves a share resale. NextWave’s financial assets are smaller than Clearwire’s, with just $222 million in cash, equivalents, and short-term investments, as per its filing.