PDA Engineering of Santa Ana raised $7.2...

PDA Engineering of Santa Ana raised $7.2 million through an initial public offering of 1 million shares of common stock at $7.25 a share. Allen Spence, the company’s director of finance, said the funds are earmarked primarily for buying software companies or software products that would complement the firm’s line used in computer-aided mechanical engineering.

The 13-year-old company, which had profits of $885,000 on sales of $11.2 million in fiscal 1984, will also use the offering’s proceeds for capital expenditures, working capital and the repayment of short-term debt.

Half of the offering consisted of shares sold by PDA Engineering and the rest were shares sold by certain shareholders. The offering was underwritten by Prudential-Bache Securities Inc. and L.F. Rothschild, Unterberg, Towbin.

Besides designing, developing and marketing software, PDA Engineering also also provides advanced mechanical engineering services.