UPS Set to Go Public in Early November
United Parcel Service Inc., Atlanta, the world's largest privately held package delivery service, said last week that it will take the company public in early November now that it has received approval from the Securities and Exchange Commission.According to a registration filed at the SEC, the commission has completed a review of UPS documents ahead of schedule. As a result, the company could file in November instead of the previously reported December date.
Before the company can offer stock to the public, however, it needs approval from 125,000 shareholders. According to the UPS, the company will have a meeting with employees and retirees Oct. 25 to vote on the estimated 10 percent proposed stock offering.
The company expects to begin selling its shares on the New York Stock Exchange in early November under the symbol UPS, but the number of shares and share value was not divulged in the filing, though insiders anticipate a value of $70 a share.
The UPS announced its plans to go public in July, and the sale should generate an estimated $3 billion to $5 billion. At that time, the company said, it plans to use the proceeds from the IPO to carry out a cash tender offer to purchase some of the previously existing Class A stock. Class B stock will be sold to the public.
