Apple Grew Too Fast To Put Off Stock Offer

The Wall Street Journal

August 20, 1980

STEVEN JOBS, COFOUNDER OF APPLE COMPUTER INC., HADN'T WANTED TO SELL APPLE COMPUTER STOCK UNTIL THE COMPANY ENTERED THE FORTUNE 500. ON MONDAY, THOUGH, APPLE ANNOUNCED IT WILL SELL ABOUT $25 MILLION IN STOCK IN NOVEMBER OR DECEMBER.

APPLE HAS IN JUST FIVE YEARS BECOME THE NATION'S SECOND-LARGEST MANUFACTURER OF PERSONAL COMPUTERS. FROM $7 MILLION TWO YEARS AGO, REVENUE THIS YEAR IS APPROACHING $150 MILLION, AND NEXT YEAR SHOULD BE TWICE THAT.

APPLE WASN'T EXPECTED TO GO PUBLIC UNTIL LATE NEXT YEAR. JOBS AND STEPHEN WOZNIAK WANTED TO KEEP CONTROL AND AVOID SPENDING EXECUTIVE TIME GOING TO WALL STREET FOR AS LONG AS POSSIBLE.

WHAT CHANGED THEIR MINDS WAS FASTER-THAN-ANTICIPATED GROWTH AND THE RECENT STOCK MARKET RECEPTION FOR HIGH-TECHNOLOGY STOCKS.

APPLE HASN'T NEEDED OUTSIDE CAPITAL FOR SOME TIME. SEVERAL INVESTORS PROVIDED PLENTY OF FUNDS. BUT A FEDERAL SECURITIES REGULATION IMPOSES PUBLIC-COMPANY REPORTING REQUIREMENTS ON PRIVATE CONCERNS WITH MORE THAN $1 MILLION IN ASSETS AND 500 OR MORE SHAREHOLDERS. AND APPLE, WHICH LONG AGO PASSED THAT ASSET MARK, FOUND ITSELF A FEW WEEKS AGO COMING UNCOMFORTABLY CLOSE ON THE NUMBER OF SHAREHOLDERS AS WELL BECAUSE OF WORK-FORCE EXPANSION AND ITS EMPLOYEE-INCENTIVE PLAN.

IN THE LAST YEAR, ABOUT 400 EMPLOYEES HAVE BEEN ADDED AT APPLE, AND DEMAND FOR SOME PRODUCTS, SUCH AS THE NEWLY INTRODUCED APPLE III COMPUTER, LED TO AN INCREASE IN HIRING PLANS.