XM Satellite Radio Holdings Inc. said Friday that it was selling nearly 13.4
million shares of stock at $11.50 each, raising proceeds of $154 million.
The company may also sell an additional 2 million shares to underwriter
Morgan Stanley Dean Witter & Co.
The offering dilutes current stock holdings, which were trading at $11.19 each
The money will be used to keep XM in business through the second quarter of
In 2001, XM showed revenue of $533,000 and losses of $307 million applicable
to outstanding common shares, or $5.13 per share.
By the end of the first quarter, XM had 76,000
subscribers. It expects to sign up 350,000 by the end of the year. It needs 4
million to break even, which the company doesn't expect to have until
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