PalmSource to sell more public shares

Richard Shim Staff Writer, CNET News.com
Richard Shim
writes about gadgets big and small.
Richard Shim
PalmSource announced Tuesday that it has filed a registration statement with the Securities and Exchange Commission to offer 2.75 million shares of its common stock to the public. After the offering, the Sunnyvale, Calif.-based company would have about 14.4 million shares outstanding. The software developer added it has granted its underwriters, a group including Deutsche Bank Securities, Needham & Company and Thomas Weisel Partners, the option to purchase 412,500 shares.

PalmSource plans to use the proceeds from the offering, which it estimates will be $60.2 million, for working capital, capital expenditures and other general corporate purposes, according to the Form S-1 filed with the SEC. The company may also use a portion of the net proceeds to repay its $15 million debt to Texas Instruments or to fund investments or acquisitions of complementary businesses.