Atlanta-based power marketer Southern Energy Inc. raised theestimated price range of its initial public offering yesterday, andexpects net proceeds from the deal to reach $1.05 billion — 19%more than the previously expected $884 million in net proceeds. Itsprice rose nearly $3 yesterday, to $18 to $20 per share from $15 to$17 per share.

The Southern Co. spinoff, with target markets in North America,Europe and the Asia-Pacific region, has received approval for a NewYork Stock Exchange listing under the symbol “SOE.” It will stilloffer 58 million common shares in the $15 to $17 per share range,as well as offer six million convertible trust preferred securitiesthat could net $290 million more, according to an amendedprospectus filed with the U.S. Securities and Exchange Commission.

When the IPO is completed, the company would have 330 millioncommon shares of stock outstanding, with 272 million held bySouthern Co. With a median price of $19 a share, Southern Energywould have an initial market capitalization of $6.27 billion.Southern Co. plans to spin off the marketer within a year followingthe IPO by distributing the remaining shares of common stock toSouthern Co.’s common stock shareholders.

A portion of the money raised will be used to repay nearly $839million in short-term debt, and the remainder will be used forgeneral corporate purposes. Goldman Sachs and Morgan Stanley DeanWitter are the lead managers. Banc of America Securities, CreditSuisse First Boston, J.P. Morgan, Lehman Brothers and Salomon SmithBarney are assisting. They have an option to buy 8.7 millionadditional shares if the 58 million shares first offered areoversubscribed.

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