Saifun plans to raise $95.5m. on Nasdaq

Two Israeli semiconductor developers filed to list on Nasdaq over the weekend.

Two Israeli semiconductor developers filed to list on Nasdaq over the weekend, with Saifun Semiconductors planning to raise net proceeds of around $96m. and Passave $68m. Netanya-based Saifun is offering five million shares with an over allotment option of 750,000 shares and expects to price its initial public offering at $20.50-$22.50. Following the listing, the company will have 28.7 million shares, giving it a market capitalization of $588m.-$645m. The company develops a technology called nitride-readonly memory, or NROM, for the non-volatile semiconductor memory market. Nonvolatile semiconductor memory devices retain stored information without a power source, giving them an advantage over volatile semiconductor memory devices, which lose stored information when the electricity is turned off. Saifun's technology is used in a variety of consumer electronic products, such as mobile telephones, digital cameras, portable computers and digital video recorders, and its customers include Infineon Technologies, Matsushita Electric Industrial Co., Macronix International and Sony. In 2004 it made a net loss of $37.9m., revenue of $32.2m., and operating income of $4.5m., and for the six months ending June 26, it made operating income of $25.1m. and revenue of $44.9m. In the three months ending September 25, preliminary results show that it made net income of $10.3m.-$10.8m., revenue of $17.5m.-$18m., and operating income of $10m.-$10.5m. Saifun plans to use the proceeds from the IPO for research and development, business development and marketing, and for general corporate purposes. In addition it may invest in complementary companies, products or technologies, although it has signed no agreements as yet. The company, which was founded at the end of 1996, has over 200 employees, most of whom are based in Israel. Herzliya Pituah - based Passave expects to offer 4.7 million shares at $15-$17 each, with shareholders providing an overallotment option of 705,000 shares. Following the IPO, the company will have 12.3 million shares, giving it a market capitalization of $185m.-$209m. The company's directors, executive officers and their affiliated entities will own 50.6% of the company, or 45.4% if the underwriters exercise their overallotment option. The company develops "system-on-a-chip" technology for telecommunications networks, enabling service providers to offer voice, video and highspeed Internet access, or "triple-play" services, over optical networks. Founded in 2001, the company now has over 100 employees, including 88 in research and development, 20 in sales and marketing and 18 in general and administration.