ROCHESTER, N.Y. – CVC Inc., a manufacturer of magnetic recording heads, went public November 12, offering 3.5 million shares at $10 apiece. The company’s stock priced below its $11 to $13 filing range.
Underwritten by Lehman Brothers Holdings Inc., Prudential Securities, SG Cowen Securities Corp. and Warburg Dillon Read L.L.C., the initial public offering left 11.5 million shares outstanding.
Seagate Technology Inc., Nikko Tecno Co. Inc. and Advent International Group were venture backers. Selling shareholders collectively sold 500,000 shares of stock.
The company is a worldwide supplier of equipment used to make magnetic heads for disc drives and advanced semiconductor devices for computers and communications systems.
The $27 million in proceeds expected from the IPO will be used to repay loans and for general corporate purposes.
CVC has always generated a profit, earning $264,000 in 1998 and $1.6 million in 1999.
Seiya Miyanishi, president and chief executive officer at Nikko, joined the company’s board of directors in 1990. Donald Waite, who has served as a senior administrative officer, senior financial officer and executive vice-president at Seagate, followed in 1995. Douglas Kingsley, a senior vice president at Advent, joined the board in 1998.
CVC – Selected Financial
(in thousands, except per share data)
Year Ended September 30
1995 1996 1997 1998 1999
Total revenue 21,358 48,378 62,588 68,173 82,915
Net income 130 3,179 2,045 264 1,571
Net income per share 0.18 4.32 2.67 0.26 1.01