SAIC, previously owned by its more than 43,000 employees, sold 75 million shares at $15 each. Trading began Friday at $17 and shares closed the day at $18.18, up more than 21% from the initial offering price. Morgan Stanley and Bear Stearns were the underwriters for the deal and can still buy an additional 11.25 million shares to cover over-allotments, according to an SAIC release.
SAIC employees will still own some 80% of the stock and have nearly all the voting rights since their preferred shares carry ten times as many votes as common stock. Employees will also see a special $2.45bn dividend from the IPO and SAIC’s existing cash.
The IPO is expected to free up additional cash in the future though, as much of the company’s cash reserves have been put toward employee stock buybacks in recent years. SAIC shares are trading under ticker symbol SAI.
