Appeal Of Ross Perot Leads To Rush For Stock

Computergram International, Feb 3, 1999

Shares in Perot Systems Corp rocketed 153% to $40.5 when trading began yesterday as investors clamored for stock in a company run by one of the legends in the world's IT industry. Even though underwriters had twice raised the price range of the offer from $11-$12 to $15-$16 and eventually priced it at $16, they totally underestimated demand, which was more akin to that of an internet stock.

While Perot is 68, the business record and glamour of the former US presidential candidate was sufficient to lead a rush for the stock. Dallas, Texas-based Perot Systems claims to be world's sixth largest provider of outsourced information technology services, is led by one-time presidential hopeful Ross Perot and earned $9.1m on $452.7m of revenues in the first half of 1998.