Network Solutions' stock soared 15 percent on Monday after its board of directors approved a two-for-one stock split and filed to offer more shares to the public.
Shares of Network Solutions (NSOL) rose US$20 to $150.88.
On 26 February, shareholders will receive one additional share for each share of common stock they own. The split takes effect 23 March and doubles shares outstanding to about 33 million.
Stocks tend to rise after the company announces a stock split. Investors generally regard stock splits as a signpost of good fortunes.
Network Solutions enjoys a monopoly over registering .com, .net, .org, and .edu domain names. This monopoly is expected to change in April, when Network Solutions will be required to open up its registry for others to sell names into.
Network Solutions also said it filed a registration statement with the Securities and Exchange Commission for a secondary common stock offering of 4.58 million shares. The majority of the shares to be offered are held by Science Applications International Corporation, or SAIC, a consulting company.
J. P. Morgan and Hambrecht & Quist will underwrite the offering. Network Solutions won't receive any proceeds from the sale of stock, the company said. The offering could close in mid-February, according to spokeswoman Cheryl Regan.
After this secondary offering is completed, SAIC will still own about 45 percent of Network Solutions.
Analysts said Network Solutions won't face serious competition for at least a year. Would-be rivals still have to prove that the Internet will function smoothly with more than one domain-name registrar.
