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Technology Stocks : Safeguard Scientifics SFE -- Ignore unavailable to you. Want to Upgrade?

To: OverSold who wrote (2669)	4/21/1999 9:32:00 AM
From: Ray Dopkins	Read Replies (1) \| Respond to of 4467

New IPO Program......Comments? We have been developing a new program for delivering IPOs to our shareholders, called subscription rights offerings, that we believe is a better model in the current IPO market where significant institutional ownership is important for after-market support. Under this new program, shareholders will still be able to participate in the initial public offerings of selected Safeguard partnership companies. Although we are still working on finalizing the program, we want to discuss a few key terms we expect to be different from the usual rights offering process. -- Our goal is to negotiate with the underwriters of each offering to make a minimum of 20-25% of the offering available to Safeguard shareholders. -- Under the historical rights offering process, Safeguard shareholders received one right for every five Safeguard shares. Under the new program, we expect Safeguard shareholders to receive fewer rights per Safeguard share. Also, the minimum number of shares to be purchased in order to participate in the offering will likely increase, therefore Safeguard shareholders would need a greater amount of Safeguard shares to participate. -- In addition, under the subscription rights offering process, the offering price probably will be significantly higher than the traditional rights offering price of $5 and will not be known until pricing occurs on the effective date of the initial public offering. -- Finally, the time periods for making a decision to subscribe will have to be shortened.