SAIC Revisits Postponed Plans for Public Offering
Government contractor Science Applications International Corp. may proceed with its long-delayed plans to go public sometime this fall, according to a letter to employees and stockholders issued last week by chief executive Ken Dahlberg.
The company, which had nearly $8 billion in revenue last year and has 16,000 employees in the Washington area, had considered an initial public offering for early 2006. But those plans were postponed because of troubles with a security contract for the 2004 Olympic Games in Athens.
Now Dahlberg says the employee-owned, San Diego-based company is again actively looking at an IPO. The company's stockholders meet this week, and Dahlberg plans to present a timetable that could result in an offering toward the end of September or early October. The company would set an initial price range early next month, and executives would embark on a road show soon after.
In his letter, Dahlberg cited "a slow down in growth from our historical performance due to the increasing challenges of our business environment" in warning that the IPO price may end up being below the price set for SAIC shares by the company's board in June.
Dahlberg also cautioned that it is not certain the firm will go public. He said that decision will come only after the road show, when he and the board will determine "whether market conditions warrant proceeding with the offering after all relevant information is known."
-- Griff Witte