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The dazzling success of low-price personal computer maker Packard Bell Electronics Inc. is headed for a test on Wall Street this spring with its maiden stock offering to the public.
The Chatsworth private company, which proved consumers will buy PCs at Sears-type mass-market outlets, plans to sell a 28 percent stake for $75 million.
Founded only six years ago, Packard Bell has built itself into a $675 million-a-year marketer of IBM-compatibles and other computer gear, primarily to the mass-market buyer.
Now the three Israeli immigrants who founded and own Packard Bell 100 percent will discover if their stock sells as easily as their discount computers. According to the stock prospectus of the once publicity-shy outfit:
* The 5.2 million share offering, priced at $13.50-$15.50 a share, is needed to retire much of its sizable $93 million debt, which yields a negative net worth of $4 million.
* The PC maker revealed it pumped out a torrential 500,000 IBM-type "clones" to the U.S. market in 1991. That surpassed all PC vendors but IBM and Apple, a true feat for a latecomer to the IBM clone business.
* The importer of Taiwanese computer components briefly mentioned plans to move its final-assembly operations, currently employing 410 workers in Chatsworth, to an undisclosed location by the end of 1993.
Company executives declined to be interviewed for this story because they are banned by the Securities and Exchange Commission from influencing stock price during the "quiet period" prior to an offering.
Wall Street may be especially curious about the relatively high planned share price. If all the stock is sold, it would be launched at a rather towering 52-60 times earnings. Competitors'...