Computer chipmaker Broadcom, which earlier had one of the year's most successful initial public offerings, announced that it has filed with the Securities and Exchange Commission for a follow-on offering of 3 million shares of its class A common stock.
Shares of Broadcom were down 2.46 percent today to 69.25. The stock has traded as high as 89.75 and as low as 47 since its IPO this year. In April, shares of Broadcom surged more than 123 percent in their first day of trading on the Nasdaq.
Of the 3 million shares offered, 2,607,500 shares are being sold by certain company shareholders and 392,500 shares are being sold by Broadcom. In addition, certain selling shareholders and the company have granted the underwriters an option to purchase up to an additional 450,000 shares to cover underwriters' over-allotments.
The underwriters include Morgan Stanley Dean Witter, who will serve as lead manager of the underwriting group, and BT Alex Brown, Credit Suisse First Boston, Hambrecht & Quist, and Merrill.
Broadcom plans to use the net proceeds for general corporate purposes, including working capital and acquisition of capital equipment. The company said it will not receive any proceeds from the shareholders' shares.
Broadcom makes chips that help bring Internet access to television screens through cable lines.