Investment bank Donaldson, Lufkin & Jenrette Inc has disclosed more details about the pending initial public offering of its internet brokerage business, DLJ Direct. DLJ, which announced the offering of the tracking stock in March, now says it will offer 15 million shares to the public at a proposed price range of $13 to $15. Two-thirds of the proceeds will be allocated directly ton DLJ Direct and will be used to fund increases in marketing expenditures, for international expansion, to repay a note to DLJ and for other general corporate purposes. The New York bank will keep the rest of the money from the sale.
Following the offering, DLJ says it will be left with an 85% stake in the business. DLJ will act as lead manager of the offering and DLJdirect itself will handle the internet distribution. BT Alex Brown, Goldman Sachs, Merrill Lynch, Morgan Stanley Dean Witter, and Salomon Smith Barney will co-manage the offering, which is expected to price late this month. After the sale there will be two DLJ issues trading on the New York Stock Exchange – under the symbols DLJ and DIR.
