DreamWorks Animation Sets IPO Terms

Oct 12, 2004  •  Post A Comment

DreamWorks Animation SKG, the animation house behind film hits such as “Shrek” and “Shark Tale” and the television series “Father of the Pride,” set terms Tuesday for its highly anticipated initial public offering, outlining plans to raise as much as $725 million with the issuance of 29 million shares.

The terms, described in a Securities and Exchange Commission filing submitted by the company Tuesday morning, involve pricing the shares between $23 and $25 each to raise between $667 million and $725 million. Existing shareholders in DreamWorks will receive 4 million shares, while the balance will be sold to the public.

The amount to be raised exceeds an earlier plan, under which the studio was to raise around $650 million.

Investment banks Goldman Sachs & Co. and J.P. Morgan Securities will lead a consortium of 10 other banks involved in the offering.