IMagic Plans IPO


Saint John, New Brunswick-IMagicTV Inc., which provides television over digital subscriber lines, filed for an initial public offering to raise up to $71.5 million.

IMagic plans to offer 5.5 million shares of common stock-including underwriter overallotments of 712,500 shares-a price of between $11 and $13 each.

The company will have about 24.6 million shares outstanding after the offering, which means it would offer about 22 percent of its equity to the public. No date has been set for the IPO.

Merrill Lynch & Co. will act as lead manager of the underwriting group, with Chase H & Q and CIBC World Markets serving as co-managers.

IMagicTV provides software products and services that allow telephone companies and other service providers to deliver digital television and interactive media services over a broadband network.

The company plans to use the proceeds from the offering to expand its sales and marketing activities and for research and development, working capital and general corporate purposes, including funding potential future acquisitions, according to its prospectus.

IMagicTV had sales of $2.1 million for its 2000 fiscal year, ended Feb. 29, and $3.6 million for the first six months of fiscal 2001. Net losses were $5.6 million in fiscal 2000 and $5 million in the first half of fiscal 2001.