The Channel logo

News

By | Ashlee Vance 16th December 2005 00:36

AMD forced to be more modest with Spansion IPO

Price target trimmed

AMD is feeling the pinch as tepid interest in its Spansion spinoff has forced a reduction in the IPO price range.

In a filing with the US Securities and Exchange Commission, AMD revealed a cut in the price range for the memory company IPO down from between $16 to $18 a share to between $13 and $14 a share. The Wall Street rumor mill pegged even the $13 target as ambitious with some saying a $12 per share target might be more likely. This is hardly the reception AMD was expecting.

Spansion looks to raise up to $493m in proceeds from the IPO.

By freeing itself of an up and down memory business, AMD's results should appear more consistent. The company has been taking market share from rival Intel, particularly in the server market and has enjoyed record processor revenues in recent quarters.

In addition, Intel may be less inclined to be as fiercely competitive on memory prices with Spansion as it was when AMD sold memory in-house. ®

alert Send corrections

Opinion

Privacy image

Frank Jennings

Two working parties, ministers galore... but data transfer law remains in limbo
EMC_Unity_bezel

Chris Evans

It does simplify the hardware setup, whatever it is
A microscopic view of the biometric shark skin. Pic: James Weaver

Chris Mellor

Do something and stop faffing about in the bush league

Kat Hall

International system in general needs greater transparency

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers