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Latest IPOs a mixed bag
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March 2, 1998: 1:21 p.m. ET
Offerings ranging from furniture to financials expected to raise $855M
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NEW YORK (CNNfn) - While smaller cap stocks may not own performance-bragging rights, they are delivering on diversity. This week's 10 IPO entrants, expected to raise a total of $855 million, come from a broad-range of industries from office furniture, computers, financials to sports car racing.
The biggest offering is also one of this week's hottest deals: Waddell & Reed Financial. Morgan Stanley, the lead underwriter, plans to float just over 21-1/2 shares at $21 dollars, raising a total of $456 million dollars. The mutual fund subsidiary of The Torchmark Corp., an insurance financial services holding company, is being spun off by its parent. Waddell & Reed is the exclusive distributor of 36 mutual funds: 17 under the United Group of Mutual Funds, 8 Waddell & Reed Funds and 11 TMK/United Funds. IPO trackers point out that the deal should see solid demand because of the company's sound fundamentals, including operating margins at 50 percent, 2000 financial advisors and a stable base of retirement fund inflows.
Identified by PC Magazine as one of the companies likely to lead the personal computing industry in the near future is PC Connection. The re-seller of PC and Mac hardware and software was ranked 59th in PC Magazine's top 100 most influential computer companies last year, 20 places ahead of the only other ranked re-seller on that list. The company was noted for its "pioneering customer service offerings such as toll-free technical support and instructional videotapes."
Founded 15 years ago, PC Connection has watched its sales grow by 75 percent annually to about $400 million. It plans to float $50 million dollars this week with an offering price between $15 to $17 a share.
Hoping to capitalize on the highly fragmented office furniture component market is CompX International. It is set to raise $86.95 million, with an IPO between $17 to $20 a share. CompX makes three main products for the higher-end office furniture market, including ergonomic computer support systems, drawer slides and medium-security cabinet locks. The company plans to use the proceeds to develop other applications for its technology and fund its grow through acquisitions. Salomon Smith Barney will lead this offering; Nationsbanc Montgomery Securities and Wheat First Butcher & Singer Capital Markets will act as co-managers.
A deal on the books for car racing aficionados: Championship Auto Racing Teams, which owns, operates and sanctions the premier open wheel motorsports series in North America, and the FedEx Championship Series is expected this week. Investment Bank Jefferies & Company hopes to raise $70 million with an IPO between $14 to 16.  . -- by Bambi Francisco for CNNfn Interactive
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