Dolby Plans $460-Million Initial Offering
Dolby Laboratories Inc., the developer of a music and motion picture sound system that won Academy Awards, on Friday filed plans to raise $460 million by selling shares in an initial public offering.
The sale would value the company at as much as $1.5 billion, according to people familiar with the matter.
The sale would include stock sold by the San Francisco-based company and by Ray Dolby, 71, its founder and main shareholder, according to the filing with the Securities and Exchange Commission.
Dolby’s digital audio and surround sound technology is used on movie soundtracks, DVDs, television, video games and personal computers.
“You can’t watch a movie without thinking of Dolby,” said Joel Reed, a managing director of Relational Group, a San Diego-based investment bank. “It will be attractive to a lot of institutional buyers if it’s priced right.”
Dolby did not disclose how many shares it planned to sell or at what price. Those details are expected in future filings.
Paula Dunn, a Dolby Labs spokeswoman, couldn’t be reached for comment.
Dolby’s planned offering comes as the market for initial public offerings is recovering after a year in which 63 U.S. companies scrapped or delayed planned share sales.
Dolby founded the company in London in 1965 after he received a doctorate in physics from Cambridge University.
Dolby developed a system in the 1960s that reduced background noise in tape recordings, enabling musicians to produce multitrack mixes without a hissing sound in the background. In the 1970s, the company’s surround sound system became the standard in films, beginning with classics such as “Star Wars.”
Dolby Laboratories has annual revenue of more than $200 million and more than 600 employees in Asia, Europe and the United States, according to the company’s website.
Morgan Stanley and Goldman Sachs & Co. were named lead underwriters for the offering, according to the SEC filing. J.P. Morgan, Adams Harkness and William Blair & Co. also would be underwriters.
Dolby has applied to list its stock on the New York Stock Exchange under the symbol DLB.
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Bloomberg News and Reuters were used in compiling this report.
