NEW YORK-Hewlett-Packard Co. received a nice surprise from the capital markets as it spun off its test and measurement division, Agilent Technologies Inc., in an initial public offering Nov. 17.
Hewlett-Packard, based in Palo Alto, Calif., had registered with the Securities and Exchange Commission in August for an IPO of Agilent common stock intended to raise $100 million. Agilent’s inaugural public equity issue comprised 72 million shares of common stock, priced at $30 each, for a total of $216 million.
Net proceeds will be paid to Hewlett-Packard as a dividend, which was declared before the offering was sold. In its Agilent IPO filing with the SEC, Hewlett-Packard said it took a $60 million charge against earnings during the third quarter to reflect costs associated with the spinoff.
Although the parent company said this process probably will not be completed until mid-2000, Agilent’s new management began running the division as a separate company on Nov. 1. Edward W. Barnholt is president and chief executive officer, and Robert R. Walker is chief financial officer.
Hewlett-Packard retains 85-percent ownership in Agilent.
Morgan Stanley Dean Witter was lead manager of the offering. The stock is listed on the New York Stock Exchange.
