MetroPCS, a rapidly-growing wireless service provider offering flat-rate, unlimited calling plans in major US markets, priced its 50 million share offering at $23 per share, 15% above the mid point of its proposed $19-$21 range. Bear Stearns, Banc of America and Merrill Lynch were the lead managers on the IPO. The stock is expected to open for trading Thursday morning under the symbol "PCS" on the NYSE.
Since introducing its unique, no contract service in select markets in 2002, MetroPCS has amassed 3.4 million subscribers and annual revenue in excess of $1.5 billion, making it one of the fastest growing wireless operators in the U.S. In November 2006, the company purchased additional spectrum for $1.4 billion giving it rights to launch its in additional markets, including the Northeast corridor from Philadelphia to Boston. The proceeds from the IPO will help to fund its planned expansion. MetroPCS hopes to buck the trend of recent wireless/telecom IPOs - including Clearwire (CLWR), Globalstar (GSAT) and Vonage (VG), each of which is down substantially from its respective IPO price.
