Safety Components Going Public, Hopes to Net $13.85 Million

Safety Components International Inc., a maker of air bags and ammunition, said it plans to sell 1.3 million shares for $10 to $12 a share in an initial public offering.

Safety Components was formed to conduct the business of two subsidiaries of Valentec International Corp. in Costa Mesa; the subsidiaries make ammunition and automobile air bags. A management team bought Valentec from Inselco Corp. of Dublin, Ohio, in April, 1993.

Safety Components reported a net loss of $935,000 on revenue of $13.7 million for the nine months ended Sept. 30, compared to net income of $383,000 on revenue of $4.8 million a year earlier.

The offering will be underwritten by Hampshire Securities Corp. The sale is expected to raise $13.85 million after expenses, according to a filing with the Securities and Exchange Commission. The company plans to use the proceeds to repay debt, buy capital equipment, increase factory capacity and for general corporate purposes.

The company’s shares are expected to trade on Nasdaq.