Tuesday, October 3, 2006

SAIC Sets IPO Terms

San Diego-based SAIC has set terms for its offering of 75 million shares of common stock. The firm said in a regulatory filing Monday that it expects its IPO to be priced between $13 and $15 per share, which will raise about $1B for the firm. The firm also said that it plans to pay a special dividend of between $1.6B and $2.4B to its stocholders, directors, and officers prior to the offering. The dividend is expected to reduce its cash reserves by approximately $620M to $1.4B. SAIC is looking to be listed on the New York Stock Exchange as SAI. The IPO is being underwritten by Morgan Stanley, Bear, Stearns & Co., and other investment banks. The firm provides engineering services for national security, energy, and other government agencies and industries.