Lucent Spinoff Agere Narrows IPO Price Range

Lucent Technologies'

(LU)

Agere Systems

narrowed the projected price range of its initial public offering today in an amended filing with the

Securities and Exchange Commission

.

Agere, which makes optical components that send and receive data and voice traffic, said the price range for its IPO of 370.3 million common shares would be $16 to $19 each, reducing the maximum potential proceeds to $7 billion from $7.4 billion.

About two weeks ago Lucent said the shares would be offered for a price between $15 and $20 each. Agere's suggested maximum market capitalization dropped to $25.4 billion from $26.7 billion as a result of the narrower price range.

Despite the new range, Agere will still be one of the largest IPOs in U.S. history, second only to last year's $9 billion offering of

AT&T Wireless

(AWE)

, the wireless arm of

AT&T

(T) - Get Report

.

A date for Agere's IPO, which is being handled by

Morgan Stanley Dean Witter

as lead underwriter, has not yet been set. Once public, the company will be listed on the

New York Stock Exchange

under the symbol AGR.

The company should receive about $3.75 billion in proceeds if its 222.7 million shares sell for $17.50 each. Agere said it plans to use the money for general corporate purposes, including working capital. Morgan Stanley has the right to sell up to 147.7 million of the 370.3 million shares. Those proceeds would not go to Agere.

Lucent shares were up 10 cents to $12.77 in recent trading on the

New York Stock Exchange

.