THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Thursday, January 30, 1997 TAG: 9701300563
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: STAFF REPORT
DATELINE: VIRGINIA BEACH LENGTH: 30 lines
Shares in Metro Information Services Inc., the Beach-based computer-consulting company that in November announced plans to go public, are slated to begin trading today on the Nasdaq market.
The initial selling price, $16 a share, is higher than the $12 to $14 a share that Metro had projected in its public filings. Brokers and at least one analyst said demand for the stock has been strong.
Renaissance Capital Corp., a Greenwich, Conn.-based securities concern that specializes in research on initial public offerings, gave Metro an ``above average'' quality rating in a report issued this month.
``We feel they have a great track record in their business,'' said Kathleen Smith, a Renaissance portfolio manager. She said the company, which was founded in 1979 and now has 24 offices in the United States and Puerto Rico, has shown steady growth. It is well-positioned to capitalize on Corporate America's move toward hiring outside companies to do software development and other computer-related work, she said.
Metro has said it expects to clear at least $27 million from the offering. In addition, company founder and chairman John H. Fain is selling shares that could net him $10 million or more.
A total of 3.1 million shares are being sold in the offering. The underwriters are Robert W. Baird & Co., Milwaukee; J.C. Bradford & Co., Nashville, Tenn.; and Robinson-Humphrey Co., Atlanta.