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O.C. BUSINESS PLUS | ORANGE COUNTY BRIEFLY

Keith Cos., Investors to Sell $41 Million in Stock

April 03, 2001|Bloomberg News

Costa Mesa engineering firm Keith Cos. Inc. and several of its shareholders plan to sell 2 million shares worth $41 million at current prices, according to a document filed Monday with the Securities and Exchange Commission.

Keith will offer 1.75 million shares worth about $36 million and selling shareholders will offer 250,000 shares. The number of shares outstanding will rise about 38% to 7.1 million shares.

The company expects to gain $35.5 million in net proceeds after the sale. The company will use funds for general corporate purposes, including working capital, according to the SEC filing.

Should its underwriters, Wedbush Morgan Securities Inc. and Janney Montgomery Scott LLC, take an additional 300,000 shares for themselves, the company's net proceeds would grow to $38.65 million. Wedbush Morgan last month maintained its "buy" recommendation on the company's stock and figured the price would rise to $24 from $12 a share within 12 months.

Keith stock fell 38 cents Monday to close at $20.63 a share on Nasdaq. The stock price has more than doubled since the beginning of the year.

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