NEW YORK CITY-- NYNEX Corporation announced today that the initial public offering of 305 million equity units in NYNEX CableComms (Nasdaq:NYNCY), its United Kingdom cable television and telecommunications subsidiary, has been priced at 137 pence per unit in the United Kingdom and $21.81 per American Depositary Share (ADS) in the United States. Each ADS represents 10 units.
Net proceeds from the offering are expected to be approximately $610 million (before any exercise of underwriters overallotment options, which would result in the issuance of additional units or ADSs). NYNEX CableComms will use the proceeds to continue construction of its high-capacity broadband communications network.
The ADSs will be traded on the Nasdaq National Market System in New York, and the units are expected to be listed on the London Stock Exchange. Trading will begin on a conditional basis in London and New York at 9:30 a.m. EST, with unconditional trading expected to begin on June 14, 1995 at 9:30 a.m. EST.
Approximately 33 percent of NYNEX CableComms equity is being sold through the offering, with NYNEX retaining the balance. The offering is in the form of units of paired securities representing equity in a British company, NYNEX CableComms Group PLC, and an American company, NYNEX CableComms Group Inc.
NYNEX CableComms is licensed to provide cable television and telecommunications services in 16 franchise areas covering approximately 2.7 million homes, equivalent to approximately 17 percent of the total franchised homes in the United Kingdom. As of March 31, 1995, NYNEX CableComms served approximately 130,000 cable television customers, 117,000 residence telecommunications lines, and 6,500 business telecommunications lines.
NYNEX is a global communications and media company that provides a full range of services in the northeastern United States and high-growth markets around the world, including the United Kingdom, Thailand, Gibraltar, Greece, Indonesia, the Philippines, Poland, Slovakia and the Czech Republic.
The Corporation is a leader in the telecommunications, wireless communications, cable television, directory publishing and entertainment and information services.