Feeds

Palm sets sights on $368 million (minimum) IPO

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

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

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

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.