SANTA ANA, Calif. Corinthian Colleges Inc., a private, for-profit higher-education company, held an initial public offering February 4, offering 2.7 million shares at $18 apiece. The company’s stock priced at the high end of its $16 to $18 filing range.
The initial public offering, underwritten by Salomon Smith Barney, Credit Suisse First Boston and Piper Jaffray Inc., left 10.35 million shares outstanding.
There were no selling shareholders. Venture backers included Primus Capital Fund III, Bank One Capital Partners II and The Prudential Insurance Co. of America.
Corinthian Colleges, founded in 1995, operates 35 colleges in 16 states, including Bryman College, Florida Metropolitan University, National Institute of Technology, Western Business College, Las Vegas College and Rochester Business Institute. The company’s colleges, which offer master’s, bachelor’s and associate’s degrees, appeal to students seeking a career-oriented education that will better prepare them for the increasingly demanding job market.
The company’s IPO raised approximately $43.2 million, which will be used to repay debt and for general corporate purposes.
Corinthian Colleges earned $1.81 million in 1998 and $284,000 in 1997.
Loyal Wilson, a managing director of Primus Venture Partners, joined the company’s board of directors in July 1995.
Corinthian Colleges – Selected Financial
(in thousands, except per share data)
Six Months Ended December 31,
1997 1998
Net revenue 50,786 63,270
Net income 284 1,813
Net income per share 0.03 0.21