@Home, the high-speed cable Internet service, may soon hit the public markets. Sources in the San Francisco investment banking community say that the company is seeking underwriters for an IPO in early 1997 that could place a value on the company as high as US$2 billion.
"It's pretty much an open secret among investment bankers," said one banker who asked not to be named. "It's not like you have to knock three times and ask for Louie to get in."
@Home apparently hasn't been shy about courting banks to handle what will likely be a highly sought-after deal. Sources say the company staged a "coming out party" several weeks ago in San Jose to let investment bankers know it was back in the market for underwriters. @Home had explored a possible IPO several months ago, these sources say, but ended those discussions when it experienced delays in the national rollout of its services.
Morgan Stanley and Deutsche Morgan Grenfell, according to the sources, are the two likely frontrunners for the lead underwriting position. Morgan Stanley analyst Richard Bilotti has placed a US$1.8 billion value on the company, Fortune magazine reports in its 25 November issue.
"We can't, under SEC regulations, confirm or deny whether we're going public, or when we can," @Home corporate communications director Lynda Lucero said. Lucero did confirm, however, that the company has yet to file with the SEC.
