Feeds

Palm sets sights on $368 million (minimum) IPO

Projected $16 share price will value company at $9.1 billion

  • alert
  • submit to reddit

Build a business case: developing custom apps

Palm Computing gave out a little more information on its upcoming IPO on Friday when it made its latest filing with the US Securities and Exchange Commission. According to the filing, Palm's parent, 3Com, intends to issue 23 million shares in its subsidiary, previously revealed to amount to around four per cent of the company. The shares will be priced between $14 and $16, the latter resulting in a valuation of $368 million. Given how the share price is likely to rise once the stock goes on sale, we expect that valuation is going to increase by a very healthy margin indeed. The filing says Palm will use its IPO proceeds to fund a dividend payment, debt repayments to 3Com, and increased spending on its own infrastructure, R&D and marketing. All of which will leave 3Com, which will be left with just over 93 per cent of Palm, looking very healthy indeed -- it will end up with $8.57 billion on paper, assuming Palm's shares stay at $16. However, 3Com still plans to offer the bulk of its stake to 3Com shareholders six months from the IPO. Nokia, AOL and Motorola, all of whom have small stakes in Palm, will end up with $84.8 million, $84.8 million and $68.4 million, respectively. Again, that's assuming the shares stay at $16. In total all this will leave Palm with a market cap. of $9.1 billion, almost two-thirds of 3Com's $15.9 billion market cap. ® Related Stories Colour Palm IIIc to ship 20 February -- Best Buy Palm loses ground to WinCE over Xmas Xerox patent action over Palm Pilot casts cloud on IPO Apple Palm-based PDA release real soon now

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.