I didn't even know Dolby Laboratories Inc. was planning on going public. But sure enough, they did on Thurs., 2/17/05, and quite successfully. Here is the full article, which I've copied-and-pasted below.
Dolby IPO surges 40 percent
Audio technology company raises $1.7B; citing strong fundamentals, analysts not surprised.
February 17, 2005: 12:55 PM EST
MIAMI (Reuters) - Dolby Laboratories Inc. soared 40 percent in its initial public offering Thursday, as investors scooped up shares of the well-known audio technology company.
Shares of Dolby (Research) opened at $23 a share and quickly moved to $25.20. The company had priced its shares at $18, the high end of an upwardly revised range, on Wednesday. Dolby sold 27.5 million shares to the public, raising $495 million.
The San Francisco, Calif.-based company, which has spearheaded developments in audio technology for nearly four decades, had originally filed to offer 27.5 million shares for between $13.50 and $15.50 a share. The bookrunners increased the range to $16 to $18 a share Wednesday.
IPO analysts said the pricing was no surprise given the company's stature as a household name, solid earnings, 27-percent plus annual revenue growth, 28 percent net margin in 2004 and promising revenue pipeline as home entertainment systems and surround sound become more commonplace.
Dolby earned $39.8 million on revenue of $289 million in the fiscal year ended Sept. 24, according to its filing.
"It has all the panache and reputation and credibility, all the good things that most IPO companies would give their eye-teeth for," said David Menlow, president of IPOfinancial.com.
Underwriters, led by Morgan Stanley, have the option to buy another 4.125 million shares to cover over-allotments, the underwriter said.
Dolby's principal stockholder, company founder Ray Dolby, had planned to sell 17 million shares in the IPO and expected to have a 69.8-percent stake in the newly listed company.
John Fitzgibbon, an IPO analyst with IPO Desktop.com and the Red Herring Web site, said that taking the company public gave Ray Dolby, aged 71, a way to ease estate planning, should that be one of his motives.
Once known for taking the hiss out of music cassettes, the company's digital and surround-sound technologies are now used in movie soundtracks, DVDs, television, satellite and cable broadcasts, video games and personal computers.
Following the offering, the company will have Class A and Class B common stock. Each Class A share will be entitled to one vote and each Class B share will be entitled to 10 votes, according to its filing.
Dolby's shares list its on the New York Stock Exchange under the symbol "DLB".
Dolby IPO surges 40 percent
Audio technology company raises $1.7B; citing strong fundamentals, analysts not surprised.
February 17, 2005: 12:55 PM EST
MIAMI (Reuters) - Dolby Laboratories Inc. soared 40 percent in its initial public offering Thursday, as investors scooped up shares of the well-known audio technology company.
Shares of Dolby (Research) opened at $23 a share and quickly moved to $25.20. The company had priced its shares at $18, the high end of an upwardly revised range, on Wednesday. Dolby sold 27.5 million shares to the public, raising $495 million.
The San Francisco, Calif.-based company, which has spearheaded developments in audio technology for nearly four decades, had originally filed to offer 27.5 million shares for between $13.50 and $15.50 a share. The bookrunners increased the range to $16 to $18 a share Wednesday.
IPO analysts said the pricing was no surprise given the company's stature as a household name, solid earnings, 27-percent plus annual revenue growth, 28 percent net margin in 2004 and promising revenue pipeline as home entertainment systems and surround sound become more commonplace.
Dolby earned $39.8 million on revenue of $289 million in the fiscal year ended Sept. 24, according to its filing.
"It has all the panache and reputation and credibility, all the good things that most IPO companies would give their eye-teeth for," said David Menlow, president of IPOfinancial.com.
Underwriters, led by Morgan Stanley, have the option to buy another 4.125 million shares to cover over-allotments, the underwriter said.
Dolby's principal stockholder, company founder Ray Dolby, had planned to sell 17 million shares in the IPO and expected to have a 69.8-percent stake in the newly listed company.
John Fitzgibbon, an IPO analyst with IPO Desktop.com and the Red Herring Web site, said that taking the company public gave Ray Dolby, aged 71, a way to ease estate planning, should that be one of his motives.
Once known for taking the hiss out of music cassettes, the company's digital and surround-sound technologies are now used in movie soundtracks, DVDs, television, satellite and cable broadcasts, video games and personal computers.
Following the offering, the company will have Class A and Class B common stock. Each Class A share will be entitled to one vote and each Class B share will be entitled to 10 votes, according to its filing.
Dolby's shares list its on the New York Stock Exchange under the symbol "DLB".
