LOS ANGELES -- Packard Bell Electronics Inc., one of the nation's top personal computer sellers, said Tuesday it plans to go public with a stock offering that will raise between $70.2 million and $80.6 million.
Packard Bell, which specializes in low-end machines that are IBM- compatible, said it has filed with the Securities and Exchange Commission for an initial public offering of 5.2 million shares of its common stock at estimated prices of $13.50 to $15.50 a share.
Packard Bell, which was relatively unknown in the computer business until a few years ago, has been estimated as the nation's fifth-largest seller of personal computers and the second-largest supplier of personal computer display monitors.
Packard Bell said it shipped more units last year of IBM-compatible personal computers in the United States than any company other than IBM. Industry estimates place its 1990 share of IBM-compatibles at 3.4 percent, or $663 million.
Packard Bell was created in 1985 when three industry veterans -- Beny Alagem, Alex Sandel and Jason Barzilay -- bought the name from conglomerate Teledyne Inc. Although the original company had produced televisions and radios for several decades, it was virtually a shell at that time.
Analysts say Packard Bell's success stems partly from its decision to become one of the first companies to sell systems that were virtually ready for buyers to operate right out of the box.
Another factor in its favor was its strategy of selling through mass merchandisers. That choice has paid off due to the increased popularity of buying computers from mass marketers, such as Sears and Price Club, rather than at specialty stores such as Businessland.
Packard Bell's retailers also include Montgomery Ward, Wal-Mart, Best Buy, Circuit City, Silo, Costco and CompUSA.
Analysts say the low-end focus of Packard Bell and other relatively small companies, such as Dell and AST Research, have taken away some market share from major players such as IBM and Compaq.
Packard Bell's computers are assembled in the United States from parts made domestically and in Korea, Japan, Taiwan and Singapore.
