Flextronics International Ltd. said today it will sell 8.6 million ordinary shares of the company's stock to raise funds for working capital and new expansion.
The San Jose-based contract electronics manufacturer will tender the shares in a public offering for $59 per share. Banc of America Securities LLC, San Francisco, is underwriting the offering.
Flextronics, a top-tier CEM with 1999 net sales of $1.1 billion, is well positioned to capitalize on Wall Street's interest in highly valued CEM stocks, according to observers. The company has been in a growth mode for most of the last year, with agreements to acquire several companies, including midtier CEM Dii Group Inc., design company Palo Alto Products International Pte. Ltd., and certain manufacturing assets of Cabletron Systems Inc.
Flextronics' shares as of mid-morning Friday were trading at $60.25 per share. The company's 52-week share price ranged from $16.33 per share in March 1999 to a high of $66.63 last month.
Last year, Flextronics completed an equity offering of 13.8 million ordinary shares at $33.85 per share with net proceeds of $448.9 million. The company said the funds were used to expand its business, and for working capital and general corporate purposes.