Advertisement
YOU ARE HERE: LAT HomeCollections

Peters Co. Raises $10.5 Million in Initial Public Stock Offering

September 22, 1987|LESLIE BERKMAN | Times Staff Writer

J.M. Peters Co., a major Southern California residential builder, raised $10.5 million Friday in its initial public offering after sharply reducing the number of shares and their price in response to a deteriorating public market for housing stocks.

The Newport Beach-based company sold all 1.75 million common shares offered--12.7% of its stock--at a price of $6 per share. The stock, traded in the over-the-counter market, closed Monday at $6.50 per share.

And while Peters lowered its sights, Friday's stock sale places the value of the company at almost $83 million--far above the approximately $22 million the Southmark Corp., a Dallas-based national real estate financial services conglomerate, paid when it bought the company in 1985.

When Peters filed its original prospectus with the Securities and Exchange Commission in May, it said it planned to sell 4.25 million shares, or about 30% of the company, at a price of $8 to $10 per share. In August, the proposed stock sale was reduced to 2.5 million shares at a per-share price of $7.50 to $8.50, before it was further downsized to Friday's offering.

"The price reflects a deterioration in general market conditions," said Doug McClure, managing director within the corporate finance department at Drexel Burnham Lambert, which marketed the J.M. Peters stock.

Advertisement
Los Angeles Times Articles
|
|
|