Dreamworks IPO

[Sarangel]

OK, this is technically not Disney, but I figured more people than me might be interested in this:

Animated film-maker DreamWorks Animation SKG Inc. set its anticipated initial public offering at 29 million shares -- which could raise $725 million, Reuters is reporting.

In July, DreamWorks LLC said it planned to spin off its animation unit, which employs 1,200, into a new company and move forward with an initial public offering of the unit. It filed with the SEC to sell stock as a way to pay off debt. Media reports then valued that IPO at $650 million.

Under the IPO, the company will offer 25 million shares. Selling shareholders will sell 4 million more shares, the report states.

October is an important month for DreamWorks. The company said in an Securities and Exchange filing in September it was relying heavily on "Shark Tale" for its success. It said if "Shark Tale" didn't perform well at the box office and in home video sales, the company's international box office and home video future success would be in doubt. Since its release, "Shark Tale" has brought in about $52 million.

"Shrek 2," the Glendale-based company's most successful film to date, has been called the highest-grossing computer-generated motion picture. In its opening week, the film grossed $42.4 million. "Shark Tale" brought in $20.6 million in its opening week.

Goldman, Sachs & Co. and J.P. Morgan Securities Inc. are serving as joint book-running managers of the offering.