Is the IPO making a comeback?

Seagate Technology has announced that it has filed for an initial public offering with the Securities and Exchange Commission in the US.

Seagate is one of the leading manufacturers of hard drives for large businesses as well as for consumer electronics and PCs.

The California-based firm had been a publicly traded company but went private in early 2000 when the company's hard drive business was acquired by a group of investors led by Silver Lake Partners for nearly $1.7bn.

Company representatives declined to comment on the filing, citing a quiet period. Seagate is hoping to raise $1bn through the IPO, based on the company's registration filing fee.

Considering the current market climate, Seagate's venture into the public markets is a daring move, analysts said.

David Menlow, president of IPOfinancial.com, said: "This is an awful time for any company to go public, because the valuations they'll receive are so low."

Despite concerns, the hard drive maker still has some things in its favour. For one, it's profitable. Seagate posted an operating profit of $374m on revenue of nearly $6.1bn in 2002, an improvement from its financial performance when it went private in 2000. That year Seagate reported an operating loss of $285m on revenue of nearly $6.1bn.

The company has also increased its share in the enterprise storage market, from 36 per cent four years ago to 60 per cent this year - mostly at the expense of IBM, said Hoefer and Arnett analyst Mark Miller.

Morgan Stanley and Salomon Smith Barney will serve as lead bankers for the offering.

Richard Shim and Dawn Kawamoto write for News.com