Company hopes to achieve company value of $140 million to $170 million pre-money, CEO selling shares 

Shirley Yom-Tov
October 15, 2006
With Reuters

RR Global Communications Networks plans to float stock on Nasdaq by year-end. The company, fondly known as RR Satellite or RRSat, is a subsidiary of Rapac Electronics and yesterday filed its papers with the U.S. Securities and Exchange Commission. Another shareholder is Kardan NV (TASE: KRDN).

RRSat believes it can raise $40 million to $55 million at a company value of $140 million to $170 million. Post-money, its company value should b ebetween $183 million to $217 million. The company, which provides services to the television and radio broadcasting industries, filed to sell 3.8 million shares in its Wall Street initial public offering. It believes it can command a price range of between $11 and $13 per share.
 
Of the 3.8 million shares, holders will sell 175,000 shares, the Israeli company said. The seller will be David Rivel, the company's founder and CEO. His exit should bring him between $1.9 million to $2.3 million. At present Rivel owns 20.9% of the company's shares, a holding he means to reduce to 14.8%. Including green-shoe options, in total 4.2 million shares could change hands. Rivel's son Lior, 33, serves as the company's marketing VP.

CIBC World Markets, Thomas Weisel Partners LLC, William Blair & Company, C.E. Unterberg Towbin and Maxim Group LLC will underwrite the IPO. For the year 2005 RRSat netted $5.1 million on turnover of $30.2 million.