NEW YORK (AP) -- Fender Musical Instruments Corp. on Monday priced its initial public offering of 10.7 million shares at $13 to $15 per share.
Fender now expects its IPO to bring in $139.3 million to $160.7 million. When the Scottsdale, Ariz., company filed for an IPO in March it said it expected the offering to be worth about $200 million. Fender is selling 7.1 million shares in its IPO, meaning the company expects to receive $92.9 million to $107.1 million in proceeds before expenses and discounts.
The other shares are being sold by owners of Fender stock, and the company won't receive any money from the sale of those shares. The underwriters of the IPO will have an option to buy another 1.6 million shares from those stockholders.
Fender's best-known guitars include the Stratocaster and Telecaster models and Precision and Jazz basses. In addition to the guitars, basses and amps sold under the Fender name, it sells the Squier, Jackson, Guild, Ovation, and Latin Percussion brands. The company reported $700.6 million in revenue in fiscal 2011 and a profit of $19 million for the year. Fender says it had the largest share of the U.S. market in electric, acoustic, and bass guitars and amplifiers in terms of revenue, and is one of the largest musical instrument accessory distributors.
After the IPO, Fender shares will be listed on the Nasdaq Global Select Market under the symbol "FNDR."