Xircom Plans Offering of 2 Million Shares

Xircom Inc., a Calabasas developer of products that link computers, plans an initial public stock offering of 2 million common shares that it hopes will raise about $22 million.

In a filing with the Securities and Exchange Commission, Xircom said a group of shareholders, including Chairman J. Kirk Mathews and President Dirk I. Gates, also plans to offer an additional 1 million shares in the sale.

After the public sale, Xircom’s executive officers and directors would continue to own a combined 49.6% of the company’s stock.

The filing said the offering price is expected to be $10 to $12 a share, and that the offering will be managed by Morgan Stanley & Co. and Hambrecht & Quist Inc. Xircom plans to use the sale’s proceeds for working capital and to repay a line of credit that currently totals $4 million.

In its fiscal year ended Sept. 30, Xircom earned $2.47 million on sales of $26.3 million.