NEW YORK-Dobson Communications, Oklahoma City, sold its 25 million share initial public offering Feb. 4 at a price of $22 each, the top of the expected range.
By midday Friday, the stock price had risen to $24.63 in trading on the New York Stock Exchange. Lehman Brothers Inc. was lead underwriter for the IPO, which raised $550 million.
Dobson plans to use $372.5 million of the net proceeds from the offering as a capital contribution to its joint venture with AT&T Wireless Services Inc. to acquire American Cellular Corp. for $2.4 billion.
Up to $74.2 million of the IPO will go toward redemption of all outstanding shares of Dobson’s Class D and E preferred stock.
