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Kaynar IPO Raises $26 Million

May 07, 1997|(James S. Granelli)

ORANGE — Fast-growing fastener maker Kaynar Technologies Inc. sold 1.8 million shares at $14.50 a share Tuesday in its first public offering of common stock, raising a total of $26.1 million.

In addition, the company's major shareholder and creditor, General Electric Capital Corp., sold 200,000 shares, reducing its overall stake in Kaynar to 60.5% from 79.5%.

Wall Street quickly pushed Kaynar's price up 10% in the stock's first day of trading to close at $16 a share on the Nasdaq system.

The sale price in the initial public offering was in the $14- to $16-a-share range that the company had sought, according to documents filed with the Securities and Exchange Commission.

Kaynar said it plans to use $17.9 million of its net proceeds of $23.6 million to pay off GECC loans. The rest will be used for general corporate purposes. Underwriters have a 30-day option to buy 300,000 more shares, which would give the company an extra $4 million in net proceeds.

Created in 1993, Kaynar has built itself into a leading manufacturer of nuts, bolts and other fasteners for the commercial aircraft and defense markets.

The company, which moved its headquarters two weeks ago to Orange from Fullerton, earned nearly $2.2 million on $32.2 million in sales for the first quarter, big increases over $1.1 million in earnings on $20.7 million in sales for last year's first quarter.

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