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Technology Stocks : Perot Systems (PER) -- Ignore unavailable to you. Want to Upgrade?

To: Nandu who wrote (34)	2/1/1999 8:12:00 PM
From: Nandu	Read Replies (2) \| Respond to of 542

Not only was the offering price increased, but so was the number of shares offered. Here are two news items. Perot Systems Raises Size of Initial Stock Sale by 36 Percent Dallas, Feb. 1 (Bloomberg) -- Perot Systems Corp., which runs computer and information systems for other companies, raised the value of the stock in it plans to sell later today by 36 percent, according to a filing with the U.S. Securities and Exchange Commission. The Dallas-based company now plans to sell 6.5 million shares at $15-to-$16 each, raising about $100.8 million in its initial public offering. It had intended to sell 5.5 million shares at $13-to-$14 each, which would have raised about $74.3 million. Perot Systems on Thursday raised the expected price of its shares from a range of $11-to-$12 each. The increases today and Thursday reflect the strong demand on the part of institutional investors for a stake in the company, which was founded by Ross Perot, the 68-year-old Texas billionaire and two-time presidential candidate. The shares the company expects to sell represent a 7.7 percent stake. The company's stock will trade under the symbol ''PER'' on the New York Stock Exchange. Underwriters for the sale include Morgan Stanley, Dean Witter & Co., Merrill Lynch & Co., Warburg Dillon Read LLC, Bear, Stearns & Co., and Hambrecht & Quist LLC. Perot Systems Raises $104 Million in Initial Stock Sale Dallas, Feb. 1 (Bloomberg) -- Perot Systems Corp., founded by Texas billionaire Ross Perot to run computer and information systems for other companies, raised $104 million in an initial stock sale which attracted strong demand. The Dallas-based company sold 6.5 million shares at $16, the top of the $15-to-$16 price range set earlier today by Morgan Stanley, Dean Witter & Co., which is handling the sale. Last Thursday, the company planned to sell only 5.5 million shares at $11 to $12 each. The sale represented a 7.7 percent stake in the company, and gave Perot Systems a market capitalization of about $1.35 billion. Perot Systems was founded by Ross Perot, the two-time presidential candidate, after he made his fortune at Electronic Data Services Corp., another computer and information services company he founded. After selling Electronic Data to General Motors Corp. for $2.5 billion in 1984, Perot founded Dallas-based Perot Systems 11 years ago, two years after disagreements with GM executives led him leave the carmaker's board. Perot Systems, a smaller version of Electronic Data, earned $28.2 million in the nine months ended Sept. 30, more than double its profit in the same period a year earlier. Revenue in the nine months totaled $724.2 million, up 30 percent. EDS earned $601.2 million in the nine-month period on revenue of $12.5 billion. Perot Systems said proceeds of the sale would be used for general purposes, including acquisitions. The company's stock will trade under the symbol ''PER'' on the New York Stock Exchange. In addition to Morgan Stanley, underwriters for the sale include Merrill Lynch & Co., Warburg Dillon Read LLC, Bear, Stearns & Co., and Hambrecht & Quist LLC.