AST Plans to Offer 2 Million Additional Shares : Stock: The Irvine computer maker is seeking to raise capital for anticipated growth and research and development.
AST Research Inc., seeking to raise capital to fuel its future growth, said Wednesday that it plans to offer 2 million additional shares of stock to the public.
The Irvine personal computer maker filed a registration statement for the sale Wednesday with the Securities and Exchange Commission, company spokesman Joel Don said. The company did not disclose a date or per-share price for the offering.
For the record:
12:00 a.m. Feb. 22, 1991 For the Record
Los Angeles Times Friday February 22, 1991 Orange County Edition Business Part D Page 2 Column 3 Financial Desk 1 inches; 30 words Type of Material: Correction
AST Research Inc.--The Irvine-based computer company reported net income of $16.3 million for the second quarter ended Dec. 28. A story Thursday incorrectly stated AST’s earnings for the three-month period.
The company said the money raised in the sale will be used for working capital for anticipated growth of the company and for research and development.
The offering would increase AST’s common shares outstanding to 30 million shares, following a 2-for-1 stock split for shareholders of record on Jan. 31. The split will take effect in stock tables on Feb. 25.
AST’s initial public stock offering was in December, 1984. Its last public offering was in May, 1988, when the company raised $52.5 million by issuing corporate bonds.
At $22.875 a share, the price after the stock split is taken into account, the company could raise $45.75 million in the public offering. The actual amount raised will depend on the value of the stock on the day of the offering.
AST’s stock closed Wednesday at $45.75 a share, up $1.25 in over-the-counter trading. The company’s stock rose more than 259% during 1990. The stock split, announced in January, is intended to make the stock more affordable to a broader base of investors.
Besides gaining more capital, the offering will increase the liquidity--or trading activity--of AST’s stock without company insiders losing much ownership control, said Steve DeLuca, an analyst for the Newport Beach investment firm Cruttenden & Co. He said the company can issue the stock because of its excellent financial condition.
“Not a lot of other companies can do this now,” he said. “They’re out there issuing more shares because they can.”
AST’s earnings rose nearly threefold to $8.7 million for its second fiscal quarter ended Dec. 28. Sales for the quarter rose 24% to $161.1 million.
First Boston Corp. and Bear, Stearns & Co. will co-manage the offering.
