Petersen Raises $122.5 Million in IPO

Petersen Cos., publisher of Teen and Motor Trend magazines, among others, sold shares in a $122.5-million initial public offering at $17.50 each, said Morgan Stanley Dean Witter, which managed the sale. The Los Angeles-based company sold 7 million Class A shares, more than the 6.25 million expected, for more than the expected range of $15 to $17 a share, in a sign of strong demand. Petersen attracted attention with its stable of varied special-interest magazines that also include Guns & Ammo, and because the investor group that bought the publisher in September 1996 has managed to cut costs. The company, which puts out a total of 78 publications, dates back to 1948, when founder Robert Petersen started publishing Hot Rod magazine. At $17.50 a share, Petersen is priced at between two to three times its pro forma revenue per share for 1996. Petersen will trade on the NYSE under the symbol PTN.