CSR: biggest tech IPO for three years

Investors in CSR, formerly Cambridge Silicon Radio, should be pleased with the company’s debut on the London Stock Exchange. Shares in the company met strong demand, changing hands for 242 pence against an offer price of 200 pence, according to dealers.

CSR, a developer of Bluetooth systems that enable short-range radio communication between mobile PCs, mobile phones and other devices, priced its IPO at 200 pence per share, at the top of the 160-200 pence range set by the company. Based on the offer price the company will have a market capitalisation of around £240m.

CSR raised £78.7m, making it the UK’s biggest technology flotation for almost three years. The offer comprised 39.37 million shares, of which 19.4 million are new ordinary shares. Trading in the shares became unconditional on March 2.

The company is backed by a host of investors including 3i, Amadeus, Gilde, Intel Capital, Mustang Ventures and Razorfish. Original investors in CSR were 3i, Amadeus Capital Partners and Gilde Investment Management, which together committed an undisclosed sum in December 1999. Intel Capital joined in February 2000, with another undisclosed investment. Round three in May 2000 saw a total of seven investors, including many of those mentioned. The third round was the largest at €42m. The fourth round in May 2001 raised $8m and the fifth in March 2002 raised $19m.

VC investors are subject to the standard six-month lock-in period.