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UPS Anticipates Raising $4.6B

October 20, 1999

ATLANTA (AP) _ United Parcel Service could raise as much as $4.6 billion in its initial public offering set for next month, according to a document the company filed Wednesday with federal regulators.

UPS said in the Securities and Exchange Commission filing that it expects to sell 109.4 million shares valued at $36 to $42 per share after a 2-for-1 split planned immediately before the IPO.

The package delivery giant announced in July that it plans to sell 10 percent of its common stock to the public.

If the offering goes forward at the higher price of $42 per share, it would be the largest ever, valued at about $4.6 billion.

The largest IPO was last year’s $4 billion offering by the oil company Conoco. Last year, Goldman Sachs, the securities firm, raised $3.66 billion when it went public in the second-largest IPO ever.

Atlanta-based UPS has about 330,000 employees. Last year, the company reported net income of $1.7 billion on revenues of $24.8 billion.

Employees are set to vote on the proposed stock sale Oct. 25. If it’s approved, UPS expects the IPO to occur in November, although no date has been set, company spokesman Norman Black said.

Employees and retirees now own about two-thirds of the company.

UPS is expected to trade on the New York Stock Exchange with the symbol UPS.

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