Secondary Details
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Friday January 29, 7:21 pm Eastern Time
ISSfiles public offering for 2.4 mln shrs
ATLANTA, Jan 29 (Reuters) - ISS Group Inc (Nasdaq:ISSX - news), parent company of Internet Security Systems Inc, said on Friday it has filed with the Securities and Exchange Commission (SEC) for a proposed public offering of 2.4 million of it common shares.
The company expects to use the net proceeds from the sale for working capital and general corporate purposes.
The company said 1.92 million of the shares will be offered in the United States, while 480,000 will be offered internationally. Of the shares covered by the registration statement, 1.2 million will be sold by the company and 1.2 million shares will be sold by certain selling stockholders.
The U.S. offering is being underwritten by Goldman, Sachs & Co., which is lead underwriter.
The international offering is being underwritten by Goldman Sachs International.
The company and the selling stockholders have granted the underwriters an option to purchase up to an additional 360,000 shares to cover any overallotments.
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This will raise about $60M cash for the company. Smart to use this strong market to raise some cash. And there will only be 1.2 Mil new shares issued... a 7% dilution - $4.25/share on $60. We got that set-back yesterday ( Tuesday, 2-2-99 ). Have since recovered, and closed today at $60. Now awaiting more news
Hopefully, ISSX will perform like VRSN did after its Secondary.
VRSN went from 60 to 99 in a month.
In general, the stock will be marked down by the percentage of the dilution of the Secondary. Most Secondaries are set at 10% or less of Shares Outstanding. Otherwise shareholders get upset by the amount of the stock price markdown. In this case the new issue is only about 7%.
Good luck, ISSX longs! |
