Three principal stockholders are making a second public offering of 2,325,000 shares of Geneva Steel stock.
Geneva filed a registration statement with the Securities and Exchange Commission Wednesday on behalf of the sellers; the statement is not yet effective. The selling stockholders are the Federal Deposit Insurance Corporation, Benefit Capital Management Corp. and Boettcher & Company, Inc.The selling stockholders granted stock underwriters a 30-day option to purchase up to 211,781 additional shares to cover over-allotments.
Dennis Wanlass, Geneva's chief financial officer, said the FDIC and Benefit Capital will attempt to sell all their shares of Geneva Steel stock. Before Boettcher & Company can offer its shares for sale, the FDIC and Benefit Capital have to sell all of their shares, Wanlass said. Boettcher plans to offer 3,000 shares plus an additional 12,990 in the over-allotment.
The stock's price will be based on the current market value of Geneva stock.
"There will be no dilutive effect on earnings per share of the company," Wanless said.
Neither the company nor its management is selling shares, and Geneva will not receive any proceeds from the offering.