PC Quote as a back door play. As of March 31, 1999, PQT had 14,830,351 common shares outstanding. There are also preferred shares outstanding that are convertible into a minimum of 5,013,663 common shares. Additionally, PICO Holdings has options on 3,106,163 shares at $1.575 per share. If these options are exercised and the proceeds are used to purchase shares on the open market at the current price of 9 7/8, this will result in additional dilution of 2,610,750 common shares. For the moment, I will ignore any additional dilution. If you add the current number of common shares outstanding and the dilution from the preferred stock and the PICO options, there are approximately 22,454,764 common shares.
PQT will offer 1,950,000 of its PCQuote.com shares in the IPO, generating approximately $25.35 MM in cash, or $1.13 per share, and it will retain 7,850,000 shares in the stock of its subsidiary. Assuming a price of $13 per share, the shares will have a value of approximately $102.05 MM. Discount this amount by 40% for tax and liquidity considerations and you are left with $61.23 MM, or $2.73 per PQT share. Subtract the $2.73 and the $1.13 in cash from $9.88, the current price of PQT, and Hyperfeed is currently being valued at $6.02 per share.
Note that my gut feel is that PCQuote.com will trade at a premium to its offering price. Regardless, PQT is probably a bit overpriced. The above is JMHO.
PCQuote.com Form S-1:
ipocentral.com.
PC Quote Form 424B3:
sec.gov |
