IPOs IN REGISTRATION – AirNet Communications Corp. –

MELBOURNE, Fla. – AirNet Communications Corp., a wireless network infrastructure company, went public December 7, offering 5.5 million shares at $14 apiece. The company’s stock priced above its $11 to $13 filing range.

Underwritten by Salomon Smith Barney Holdings Inc., Hambrecht & Quist Group and Volpe Brown Whelan & Co., the initial public offering left 22.2 million shares outstanding.

There were no selling shareholders. SCP Private Equity Partners LP, Adams Capital Management Inc., Harris Corp., Live Cycles Holding Co., Patricof & Co. Ventures Inc., Tandem GSM Capital and Venture First Associates of Melbourne Inc. were venture backers.

The company provides base stations and other wireless telecommunications infrastructure products designed to support the Global Standard for Mobile Communications (GSM) system of mobile voice and data transmission. The AdaptaCell uses software instead of hardware to define the coding of wireless signals.

The $70.4 million in proceeds expected from the IPO will be used for general corporate purposes, including working capital and capital expenditures.

AirNet has never been profitable, losing $17.2 million in 1997 and $18.8 million in 1998.

Joel Adams, a vice president at Adams Capital, joined the board in January 1994, along with J. Douglass Mullins, president at Venture First. Robert Chefitz, a general partner at Patricof, joined the company’s board of directors in January 1997. James Brown, a partner at SCP, joined the company’s board of directors in November 1997. Richard Coffey, a managing director at Tandem GSM, joined the board in August 1998.


AirNet Communications – Selected Financial

(in thousands, except per share data)

Nine Months Ended

Year Ended December 31 September 30

1996 1997 1998 1998 1999

Total revenue 1,077 1,603 4,462 2,441 11,077

Net loss -29,174 -17,236 -18,776 -12,360 -11,333