CNET también está disponible en español.

Ir a español

Don't show this again

Samsung Unpacked Samsung Galaxy Note 20 Next stimulus package Samsung Tab S7 Disney will release Mulan online Google Play Music is shutting down in December

Genuity&#039&#039s IPO goes bust

Genuity Inc. (Nasdaq: GENU) lost 1 19/32, or 15 percent, to 9 13/32 Wednesday in its initial public offering.

It priced 173.9 million shares at $11 each, well below its original range.

The subsidiary of GTE Corp. (NYSE: GTE) had planned to price its large offering at between $12 and $15 each.

Like most companies going public, Genuity's losses outweigh income. For the year ended Dec. 31, the company had net loss of $647 million on revenue of $446 million, compared to a loss of $468.6 million on revenue of $706.5 million in 1998. As of March 31, the company's accumulated deficit was about $1.5 billion.

Genuity's filings with the SEC state a critical dependence on America Online Inc. (NYSE: AOL), the company's largest customer, which accounted for about 52 percent of revenue in 1999.

The company's competitors include UUNET, a subsidiary of WorldCom (Nasdaq: WCOM), Level 3 Communications (Nasdaq: LVLT), Qwest Communications (NYSE: Q), PSINet (Nasdaq: PSIX), Verio Communications (Nasdaq: VRIO) and Williams Communications Group (NYSE: WCG).

The deal's lead underwriter is Morgan Stanley Dean Witter; Salomon Smith Barney is a co-manager.


• IPO Insider >