E*Trade hits Wall Street

E*Trade Group, an online discount brokerage, joins the IPO fever with an offer of 5,665,000 shares.

CNET News staff
E*Trade Group, an online discount brokerage service, caught the IPO fever this morning with its offering of 5,665,000 shares of its common stock for $10.50 per share.

The company is selling 5 million shares, and 665,000 shares are being sold by stockholders. The underwriters also were granted a 30-day option to purchase an additional 849,750 shares at the offering price to cover overallotments.

E*Trade will use IPO earnings for working capital and general corporate purposes. It also will use it to pay off debt. Robertson, Stephens & Company is acting as the lead manager; Hambrecht & Quist and Deutsche Morgan Grenfell/C.J. Lawrence are acting as co-managers of the underwritten offering.

E*Trade offers automated order placement, portfolio tracking, related market information, news, and other information services through the Internet, online services CompuServe and America Online, direct modem access, and touch-tone telephones.