Shares of chip maker NXP Semiconductors slip in market debut after IPO prices lowBy AP
Friday, August 6, 2010
Chip maker NXP’s shares slip in market debut
NEW YORK — Shares of Dutch chip maker NXP Semiconductors are falling in their market debut after the company priced shares of its initial public offering far below the expected range, raising $476 million.
NXP Semiconductors NV priced 34 million shares for $14 each. It had expected shares to sell for $18 to $21.
The company, which has been unprofitable for the past three years, expects to use net proceeds of $442.2 million, after expenses, to help pay down its debt load of about $5.1 billion.
Its chips are used in a wide range of products including automobiles, wireless infrastructure equipment and TV sets.
Shares ended flat at $14 in trading Friday after falling to trade as low as $12.99 earlier in the session. The shares trade on the Nasdaq exchange under the symbol “NXPI.”