Palm Doubles Expected IPO Range
Justin Dini
02/28/00 - 07:03 PM EST
Palm, which makes the handheld Palm Pilot electronic organizer, has doubled the expected price of the shares it plans to sell in its initial public offering to between $30 and $32 a share, according to a filing with the
Securities and Exchange Commission on Monday.
At that price range, Palm, a unit of
3Com(COMS Quote), could have a market value of as much as $18 billion when it goes public Wednesday.
The company now expects to raise as much as $736 million for the 23 million shares, or 4% stake, that it will sell to investors in a transaction led by
Goldman Sachs. Palm had previously planned to sell the shares at $14 to $16 apiece, raising as much as $368 million.
Santa Clara, Calif.-based Palm will trade under the symbol PALM on the
Nasdaq Stock Market.
Morgan Stanley Dean Witter ,
Merrill Lynch and
Robertson Stephens are assisting in the sale.
The company said it planned to use the net proceeds from the offering for payment of a dividend to 3Com, payment of other amounts due to 3Com, capital expenditures, marketing expenses, working capital, and potential investments and acquisitions.
