AT&T Wireless Group Tops United Parcel Service in Initial Public Offerings

Strategic Insights -

AT&T Wireless Group seized the title of the largest initial public offering (IPO) from United Parcel Service (UPS) on Wednesday, raising $10.62 billion through the sale of 360 million shares at $29.50 each. This move eclipsed UPS's previous record of $5.47 billion in its IPO last year. The AT&T Wireless Group IPO represents a 16% stake in the third-largest wireless operator in the United States, with 12.2 million subscribers.

Key Takeaways:

  • AT&T Wireless Group's IPO raised $10.62 billion, surpassing United Parcel Service's previous record of $5.47 billion in its IPO last year.
  • The AT&T Wireless Group offered 360 million shares at $29.50 each, about midway in the $26-$32 per share price range.
  • 10% of the shares were reserved for the company's 11,000 employees in metro Atlanta and 1,000 employees elsewhere in Georgia.
  • The tracking stock will begin trading on the New York Stock Exchange under the ticker symbol AWE.
  • The long-term return on tracking stocks has been generally subpar, compared with various market benchmarks, according to the University of Iowa study cited by Dow Jones.

Statistics:

  • AT&T Wireless Group's IPO raised $10.62 billion.
  • United Parcel Service's previous record IPO raised $5.47 billion in its IPO last year.
  • AT&T Wireless Group offered 360 million shares at $29.50 each.
  • The IPO represents a stake of about 16% in the wireless unit.
  • The wireless unit has 12.2 million subscribers.
  • 11,000 employees in metro Atlanta and 1,000 employees elsewhere in Georgia received shares.

Sources:

  • AT&T Wireless Group's IPO details in "AT&T Wireless Group Torres UPS' IPO Crown as It Sells $10.62 Billion worth of Stock" by an uncredited author.
  • United Parcel Service's IPO details in "AT&T Wireless Group Torres UPS' IPO Crown as It Sells $10.62 Billion worth of Stock" by an uncredited author.
  • Bloomberg News coverage of AT&T Wireless Group's IPO, citing a 16% stake in the wireless unit with 12.2 million subscribers.
  • Dow Jones's report on tracking stocks, citing a University of Iowa study on the long-term return of these stocks.