[To all, this is a more concise article on the secondary offering and the breakdown of the new shares hitting the market.]
Broadcom Files to Sell 3.4 Mln Shares in Secondary Offering
Bloomberg News
September 30, 1998, 6:19 p.m. PT
Broadcom Files to Sell 3.4 Mln Shares in Secondary Offering
Irvine, California, Sept. 30 (Bloomberg) -- Broadcom Corp.,
which had one of this year's most successful initial public
offerings, wants to sell more than 3.4 million more shares in a
follow-on offering.
The Irvine, California-based company designs semiconductors
that speed Internet access over ordinary telephone and cable TV
lines. The chips are used in cable set-top boxes, cable modems
and other devices.
Broadcom filed a registration statement with the Securities
and Exchange Commission for a sale of Class A common stock now
held by Broadcom, its executives and others. The proposed sales
come five months after Broadcom went public on April 17. Shares
more than doubled, from 24 to 53 7/8, on the first day of
trading, making it one of the best IPOs of 1998.
Broadcom said it will receive at least $28.4 million in net
proceeds using a $77 per share price based on yesterday's close.
Broadcom is selling 392,000 shares of its own Class A shares.
Another 2.6 million Class A shares will be sold by company
officers and companies that own Broadcom stock. An additional
450,000 shares will be sold to cover over-allotments by the
underwriters, which are led by Morgan Stanley Dean Witter.
Separately, the company announced 600,000 shares of Class B
common stock held by Scientific-Atlanta Inc. will be released
from an underwriter's ''lock-up'' and be available for sale by
Scientific-Atlanta. The Class B shares will convert to one share
of Class A stock when sold to the public.
Broadcom will have 44.1 million shares of common stock
outstanding after the sales are completed. Broadcom fell 6 to 71
today.
Broadcom also disclosed estimated preliminary third-quarter
results for the period ending Sept. 30. The company expects to
report earnings per share of 16 to 17 cents. It was expected to
earn 14 cents a share, according to a survey of five analysts by
First Call Corp.
It said revenue is projected to be $52 million to $52.5
million. It's scheduled to report earnings on or about Oct. 12.
--Greg Wiles in the San Francisco newsroom (415) 743-3518/pkc
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