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Mandrakesoft going public?

Jun 26, 2001, 17:34 (9 Talkback[s])

[ Thanks to Al for this link. ]

According to this unconfirmed item from a French Linux site, Mandrakesoft is planning on offering shares on the 'Marché Libre' of EuroNext, a European exchange, before the end of July. Most of the shares will be offered to large institutional investors, with a small share offered to European Linux "contributors"; because of European regulations, U.S. Linux contributors won't be offered any shares.

"We chose the 'Marché Libre' of EuroNext (http://www.euronext.com) - the Pan-European market (Paris, Brussels, Amsterdam). It's a non-regulated market and not as prestigious as the 'Nouveau Marché' or the Nasdaq for investors. Our interest in the 'Marché Libre' is that we can proceed quickly and benefit from the low cost associated with this market...."

"We expect to raise a small amount: 6 to 8 millions Euros. The valuation is not yet fixed but should be extremely attractive -- probably less than a 20th of Red Hat's valuation. If you believe that MandrakeSoft is worth more than 5% of Red Hat, you are ready to recommend our IPO :-)...."

"Unfortunately, this option can only be offered to contributors located in the European Union due to regulatory issues. We are not allowed to solicit foreign individual investors without filing multiple papers. In particular, the SEC (US market regulators) assumes that US citizens do not have sufficient knowledge to invest in IPOs of European markets and therefore imposes complicated rules for them, so numerous US contributors won't be offered to invest in this 10% part. We will probably do something just after the IPO for people who live outside the European Union."

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