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IPOs Set for Dolby, ECC

February 14, 2005|From Times Staff and Wires Services

Dolby Laboratories Inc., a household name in cutting-edge audio technology for 40 years, hopes investors will like the sound of its initial public stock offering terms this week.

San Francisco-based Dolby, a leader in digital surround sound, home theater systems, digital video recording, high-definition television and DVD players, plans to sell 27.5 million shares for $13.50 to $15.50 each.

Founder Ray Dolby will be selling 17 million of those shares and intends to emerge from the IPO with a 69.8% stake in the company.

"With us moving into the flat-panel age and home theater and everything else, the numbers on these guys are staggering," said Sal Morreale of Cantor Fitzgerald in Los Angeles.

Dolby said in its IPO filing that it earned $39.8 million on revenue of $289 million in the fiscal year ended Sept. 24.

Also slated for an IPO this week: Irvine-based ECC Capital Corp. The company, which owns mortgage lender Encore Credit, said it intended to use the proceeds of its stock offering to build and manage a portfolio of subprime residential home loans.

ECC expects to operate as a real estate investment trust, distributing all of its loan portfolio earnings to shareholders via dividends.

ECC on Friday revised the terms of its offering to boost the number of shares to 57.2 million from 49.6 million while reducing the projected price range to $6.75 to $7.25 a share, from $9 to $11.

Another Southland company expected to come to market in coming weeks is Interactive Health Inc., a Long Beach-based maker of robotic massage chairs sold through the Sharper Image and Brookstone retail chains.

The company, which also makes reclining "zero gravity" chairs and other massage products, hopes to sell 4.9 million shares at $15 to $17 apiece.

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