Viasystems Group Inc. filed an initial public offering today to sell 40 million shares of common stock to enable the company to acquire a wire-harness business and repay a portion of outstanding debt.
Viasystems hopes to raise up to $658.5 million from the public offering of 32 million shares of common stock in the United States and Canada. Another eight million shares will be offered outside North America. Underwriters have the option of exercising an additional six million shares to cover any over-allotments.
The St. Louis, Mo., contract electronics manufacturer, which at its root is a printed-circuit-board maker, hopes to capitalize on Wall Street's keen interest in highly valued CEM stocks.
Viasystems anticipated that the IPO price will be between $16 and $19 a share. The company will begin trading on the New York Stock Exchange under the symbol VG. IPO underwriters are Banc of America Securities LLC; Bear, Stearns & Co.; Credit Suisse First Boston; Deutsche Banc Alex. Brown; Goldman Sachs & Co.; Morgan Stanley Dean Witter; Salomon Smith Barney; and Wit Soundview.
Net proceeds from the offering will be used to pay back approximately $448.5 million in outstanding debt and to finance the $210 million purchase of St. Louis-based wire-harness maker Wirekraft Industries, a wholly owned subsidiary of International Wire Group Inc.
Upon completion of the IPO, Viasystems will sell off nine of its Europe-based PCB manufacturing facilities for $150 million, because they do not offer value-added services, according to the company.
Viasystems had 1999 net sales of $1.1 billion and a net loss of $616.2 million. The company attributed the loss to acquisition-related expenses.