Powerwave to Offer 1.8 Million Shares in Initial Sale

Powerwave Technologies Inc., which makes amplifiers for wireless telephones, said Tuesday it plans to sell 1.8 million shares of common stock in an initial public offering.

The company expects the stock to be priced at $11 to $13, according to documents filed with the Securities and Exchange Commission. After the offering, new investors will own 11.3% of the company, while current shareholders retain 88.7% of outstanding shares, the firm reported.

Chairman Alfonso Cordero is the largest shareholder and will continue to be the top owner after the offering, with a 34.8% stake. Cordero is one of the company’s founders and served as the company’s chief executive from June 1985 to January. Powerwave’s current chief executive is Bruce Edwards, formerly chief financial officer at computer maker AST Research Inc.

The company expects to raise $19.14 million after expenses and will use the funds for capital expenditures, working capital, new product development and other general corporate purposes, according to the SEC filing.

Powerwave designs, manufactures and markets amplifiers for wireless telecommunications equipment, including cellular phones and phones used on airplanes.

The company reported net income of $3.64 million, or 25 cents a share, for the six months ended June 30, more than quadrupling the $864,000 earned in the same period last year. Sales totaled $29.1 million, up from $11.6 million for the first half of 1995.