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Technology Stocks : Osicom(FIBR) -- Ignore unavailable to you. Want to Upgrade?

To: Afaq Sarwar who wrote (6880)	5/19/1998 2:46:00 PM
From: Bryon Bothun	Read Replies (1) \| Respond to of 10479

<<What do you think is the main reason behind going with the rights offering instead of normal IPO? << I think a normal IPO really does take something from existing shareholders, unless they do a spinoff with a share dividend to existing FIBR holders and then an IPO, which is very time consuming I would think because they would have to be two seperate processes. The point here is that none of the existing FIBR holders have to invest in the IPO, but we are given first crack at it. If we don't want it we can just sell the rights to someone who does. This puts money in our pockets that would have gone into FIBRs had they done a "normal" sale. I think they could sell this idea on the street maybe even better than they can to us. We all invested once but we've all been burned a little too. A nice clean break from FIBR would be great for the EN unit but not for us (if we don't own any of it). >> Are the numbers of companies going the Rights Offering rout is larger than the those choosing the normal IPO method during the same period? Any percentages for each type? << I'm sure this kind of method is much more rare. The situation is complicated though in that Fibr cant afford a true spinoff and the EN unit is not a true IPO. This process has to raise some capital for both. Bryon