Chipmaker MaxLinear prices IPO above expectations
Chipmaker MaxLinear Inc. became the second company this year to price its initial public offering above expectations on Tuesday night, raising $89.6 million.
Last week, portfolio manager and advisory firm Financial Engines Inc. was the first company to do so since late November, raising $127.2 million.
MaxLinear and its shareholders sold 6.4 million shares to initial investors for $14 apiece late Tuesday. It had hoped to offer 5.4 million shares for $11 to $13 each.
The underwriters, led by Morgan Stanley & Co. and Deutsche Bank Securities Inc., can obtain an additional 966,614 shares to sell to cover over-allotments.
The Carlsbad, Calif., company makes chips used for broadband video in PCs, phones, TVs and other electronics.
It is expected to start trading on the New York Stock Exchange Wednesday under the ticker symbol "MXL."
The IPO market hit roadblocks earlier this year. Companies had to accept lower prices on stock than they had hoped for in their initial public offerings or trim the number of shares being offered.
But the gradual improvements in the stock market are helping open the window for IPOs, analysts say.