Palm Doubles Expected IPO Range

According to the SEC, the company plans to sell the shares for between $30 and $32.
Author:
Publish date:

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)

, 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.