Integrated Alarm increases IPO
ALBANY, N.Y. - Wholesale monitoring company Criticom, under the name Integrated Alarm Services Group, in early June filed paperwork that would increase the number of shares of the companyÃ¢â‚¬â„¢s initial public offering
The increase, to14.3 million common shares from 14 million, raises the companyÃ¢â‚¬â„¢s expectations of what the IPO will raise to between $143 million to $171.6 million, according to a company filing with the Securities and Exchange Commission. Net proceeds of the offering, about $118 million, will likely be used to pay down debt and to continue purchasing portfolios of accounts.
Company officials declined to comment on the change because of an SEC-imposed quiet period that precedes a public offering of stock.
This is the second time the company has bumped up the number of shares it intends to offer since it first filed papers to go public in November 2002. In January, the offering was increased to 13 million shares from 10 million. Analysts said then it was doubtful the current market climate and the stock marketÃ¢â‚¬â„¢s perception of the alarm monitoring sector would support a public offering of this size, then valued at $100 million.
According to the filing, the companyÃ¢â‚¬â„¢s strategy includes the purchase of 100,000 accounts in 2003, with letters of intent to acquire 17,000 contracts; entering into dealer loans with 4,000 contracts as collateral; and the purchase of dealer relationships for monitoring 32,500 alarms.
New underwriters of the offering include Stifel, Nicolaus & Co. and Wells Fargo Securities.