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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (4057)	7/31/1998 12:26:00 AM
From: ET	Respond to of 9256

biz.yahoo.com

To: Stitch who wrote (4057)	7/31/1998 9:22:00 AM
From: Sam	Read Replies (1) \| Respond to of 9256

From yesterday afternoon; price set at 7 this morning. Roughly, that indicates a PSR of around .25-.3, I think. Maxtor lowers price range on IPO Thursday July 30, 4:23 pm Eastern Time NEW YORK, July 30 (Reuters) - Disk drive company Maxtor Corp. (MXTR - news) has lowered the price on its upcoming initial public offering, reflecting what analysts said is weak demand for the deal. The company, a unit of South Korea's Hyundai Group (HYGR.CN), is selling 47.5 million shares to the public at a price range between $7-$8, the underwriter, Salomon Smith Barney, said Thurday. Maxtor had planned to sell the stock at a price between $8.50-$10.50. The deal is set to hit the market Friday, Salomon Smith Barney said. ''We're amazed the underwriter is actually going to try to sell stock in a money-losing disc-drive company,'' said Mark Basham, investment officer with Standard & Poor's. Of course, losing money has not stopped many tech-related companies from launching successful IPOs. But analsyts said investors could have higher expectations for Maxtor than they do for Internet start-ups, analysts said. The company used to be publicly traded, but was acquired by Hyundai in three separate transactions between 1994-1997. After years of losing money, the company did turn a profit in the first half of 1998, but it warned in its prospectus that it will break even at best in the second half of the year. Analysts said the company has suffered because of oversupply in the hard drive industry. ''There are problems with declining selling prices in this industy,'' said Randall Roth, an IPO analyst with Renaissance Capital Corp. (--Holly Rosenkrantz, Wall Street Desk, 212-859-1727))