GTE's ISP backbone, Genuity Inc. (Nasdaq: GENU), priced 173.9 million shares at $11 each, below range, for trading Wednesday.
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.
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