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.