Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Shapell Industries, Inc. - Lehman Brothers Collection

Shapell Industries, Inc.

List of Deals

Shapell Industries was founded in 1955 by Nathan Shapell, David Shapell, and Max Webb. Shapell was a home construction company based in Beverly Hills, California, that built custom-quality one-family home developments in Southern California.

Shapell Industries went public in August 1969 with an initial public stock offering of 1,050,000 shares at $21 per share in a deal managed by Shearson, Hammill & Company. Of the total shares offered, 700,000 were sold by the company to repay short-term loans incurred in 1969 to buy undeveloped land and as working capital to develop unimproved acreage. The remaining shares were sold by individuals. In 1969, sales for the company totaled $31.3 million.

Shapell Industries stock became listed on the New York Stock Exchange in April 1971. At the same time, the company announced that net earnings were $4 million in 1970, up from $3.4 million in 1969.

In April 1972 the three top officers of Shapell Industries: Nathan Shapell, chairman, and David Shapell and Max Webb, vice presidents, sold one million of their common shares in a secondary offering valued at approximately $28 million. After the sale, the stock holdings of the three executives amounted to 35.23 percent of the approximately 3.5 million shares outstanding.

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