52 Million New Chrysler Shares Are Snapped Up
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DETROIT — Chrysler Corp.’s common stock offering ballooned to 52 million shares after investors, hungry to cash in on one of the stock market’s rising stars, snapped up the shares with unanticipated zeal.
Underwriters on Tuesday and Wednesday purchased 12 million more shares than the 40 million Chrysler had proposed in a January filing with the Securities and Exchange Commission. At the $38.75-per-share price, Chrysler will get $2.015 billion minus brokerage fees.
By contrast, the auto maker’s last common stock offering in October, 1991, fetched only $10.12 1/2 a share.
Chrysler earnings have outperformed Wall Street estimates for three straight quarters, prompting the surge in the auto maker’s stock price. And analysts said the company has more growth potential.
“They’ve got great earnings momentum, which is very evident when you look at the numbers,” said Joseph Phillippi, an auto industry analyst with Lehman Bros. Inc. in New York.
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