McClatchy Newspapers Inc., which canceled an initial stock offering just after the October stock market cash, will go ahead with the stock sale at a much lower price than first proposed, underwriters said Wednesday.
The underwriting group led by Shearson Lehman Bros. Holdings Inc. said the price range was lowered to $15 to $18 per share from the $20 to $23 proposed before the crash.
Of the shares to be offered, 1,910,000 shares will be sold by the company and the balance of 490,000 shares by certain selling stockholders.
Initial offerings of companies attempting to go public came to a near standstill in the aftermath of the Oct. 19 stock market collapse. McClatchy was one of the most prominent victims of the slowdown in new offerings.
The new stock offer will raise an estimated $40 million for the newspaper concern.
Prior to the market's slide, the McClatchy offer had been expected to raise over $50 million.
Under the plan, McClatchy is selling 2.4 million class A shares, the same number it was planning before Oct. 19.
Goldman, Sachs & Co., Morgan Stanley & Co. and Shearson will co-manage the offering.
Sacramento-based McClatchy owns the Sacramento Bee, Fresno Bee, the Anchorage News and other media properties.