Donaldson, Lufkin & Jenrette Inc. said Wednesday that it is planning a stock offering for its on-line brokerage unit.
The New York investment bank filed with the Securities and Exchange Commission to issue a new class of common stock for its DLJdirect unit. DLJdirect will use the proceeds to fund marketing and expansion abroad, the company said. After the offering, two series of common stock would be traded on the New York Stock Exchange.
The company declined to comment on the size or price range of the offering because it is in a quiet period.
However, Christopher Musto, an analyst at Gomez Advisors of Concord, Mass., said a stock offering would probably raise capital in the billions.
An initial public offering would probably raise $2.5 billion to $3.5 billion for DLJ, Mr. Musto said. However, since DLJ will issue what is known as tracker stock - which lets buyers participate in company revenues without giving them equity - it will probably raise less money, Mr. Musto said.
On-line brokerage stocks have been trading at a premium in recent months, prompting several institutions to consider going public.
Fleet Financial Group and Toronto-Dominion Bank have also said they might spin off their on-line units.