Friday January 28, 4:27 pm Eastern Time
Palm sets IPO at 23 mln shares, $14-$16 a share
WASHINGTON, Jan 28 (Reuters) - Palm Inc., maker of the Palm Pilot hand-held computer devices and a wholly-owned unit of 3Com Corp. (NasdaqNM:COMS - news), said Friday it would sell 23 million shares in a projected range of $14-$16 a share in its initial public offering.
The company said it will net $320.7 million from the offering and will net another $225 million from private placements by America Online Inc. (NYSE:AOL - news), Motorola Inc. (NYSE:MOT - news) and Nokia Corp. (NYSE:NOK - news).
The details of the offering were revealed for the first time in an amended prospectus filed with the Securities and Exchange Commission.
After the offering, there will be about 570 million shares outstanding in the company putting its initial market capitalization at about $8.55 billion based on a $15 per share initial price.
Of that, 530 million shares will be held by 3Com, the filing said. The company plans to divest of its holdings within six months by distributing the shares to 3Com shareholders.
Palm said it would use the net proceeds to pay a dividend of at least $50 million to 3Com, repay debt to 3Com, boost spending to support growth in operations, infrastructure, and hardware and software.
If the aggregate net proceeds exceeds $620 million, 3Com has the right to elect to receive an additional dividend of up to 50 percent of the aggregate net proceeds in excess of the $620 million, the filing said.
The company has applied to list its shares on Nasdaq under the symbol ``PALM' (NasdaqNM:PALM - news) once it goes public.
The underwriters, led by Goldman, Sachs & Co., have been granted the option to purchase an extra 3.45 million shares in the event of heavy demand.
--------------------------------------------------------------------------------
More Quotes
and News: 3Com Corp (NasdaqNM:COMS - news)
America Online Inc (NYSE:AOL - news)
Motorola Inc (NYSE:MOT - news)
Nokia AB Oyj (NYSE:NOK - news)
PALM INC (NasdaqNM:PALM - news)
Related News Categories: IPOs, US Market News |
