×

ShoreTel IPO Priced at $9.50 a Share

Internet-based telecommunications provider ShoreTel on Tuesday said its initial public offering of 7.9 million shares was priced at $9.50 apiece, a dollar less per share than an earlier, postponed pricing for the offering.

The company also has given its underwriters a 30-day option to purchase up to an additional 1.2 million shares.

ShoreTel shares were originally expected to begin trading last Thursday after the IPO priced at $10.50, at the high end of the anticipated range of $8.50 to $10.50. The offering was delayed, however, after Mitel Networks Corp. sued the company, alleging ShoreTel infringed on four of its patents.

A spokeswoman for ShoreTel declined to comment on the pricing or the reason for the delay, saying the company was "officially in a quiet period."

ShoreTel said in a filing with the Securities and Exchange Commission last week that it plans to use net proceeds from the offering for working capital and general corporate purposes, and may use $5 million to acquire technology to enhance its existing products.

In the three months ended March 31, the company reported earnings after preferred dividends of $4.2 million on sales of $68.9 million.

Lehman Brothers Inc. and J.P. Morgan Securities Inc. are acting as joint book-running managers for the offering. Piper Jaffray & Co., JMP Securities LLC, and Wedbush Morgan Securities Inc. are the co-managers.

ShoreTel will trade as "SHOR" on the Nasdaq Stock Market.