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Navteq Prices IPO at $22

Jeffrey R. Hirschkorn, Senior IPO Analyst, Aug. 6, 2004

The fourth IPO pricing of the week came to us from Navteq (proposed: NVT), a provider of digital map information. This IPO is an investment of Philips Consumer Electronics. It priced its initial public offering of 40 million shares at $22, near the top of expected talk. Joint book runners on the mammoth stock sale were Credit Suisse First Boston and Merrill Lynch.

The company�s product is definitely in vogue and is evident in the firm�s client base. According to the prospectus, the company has equipped over five million vehicles with navigation systems that use its database.

Internet clientele include America Online�s MapQuest unit, MSN and Yahoo!. In 2003, these �Net portals accounted for more than six billion route planning transactions derived from Navteq�s North American database.

The company�s principal shareholder is Philips Consumer Electronic Services. As of Apr. 1, Philips controlled 83% of Navteq Corp.

The fact that a large size deal can get done in this market is a bonus for Navteq. Trading will begin on Friday. It also provides evidence that certain bona fide IPOs will attract investor interest. Of course, the Philips angle certainly provided a lift to the firm�s second attempt at public life. The company, formerly known as Navigation Technologies, tried to price an IPO in 1996.

Demand for shares in the aftermarket are strong. By 11AM, shares of Navteq were up 15% to $25.38.

In an unrelated note, Stereotaxis (proposed: STXS) has been placed in the infamous day-to-day category. Translation: a lack of buyers that could result in an official withdrawal.

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