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Fox bolsters its IPO
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November 10, 1998: 6:34 p.m. ET
Offering increased to $124.8 million shares at $22.50 as demand increases
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NEW YORK (CNNfn) - Fox Entertainment Group Inc. will boost its initial public offering to 124.8 million shares amid heavy demand for the media giant's stock.
The offering, planned for Wednesday, was originally set at 85 million shares.
Shares of the new company (FOX) will begin trading on the New York Stock Exchange at $22.50 apiece, in line with lead underwriter Merrill Lynch & Co. Inc.'s estimates of $21 to $24.
Fox, a unit of media mogul Rupert Murdoch's News Corp. Ltd. (NWS), has garnered strong interest from institutional investors because of its diversified sources of revenue. The company's vast portfolio includes the Los Angeles Dodgers baseball team and rights to reruns of the hit television sitcom "Seinfeld."
While demand for many IPOs has been weak as investors have shied away from new issues, companies like Fox with established names and profitable balance sheets have drawn considerable attention.
The newly issued shares will represent 18.6 percent of the company's stock. Fox will use proceeds from the offering to reduce debt and finance News Corp.'s share buyback plan. 
-- from staff and wire reports
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