Underwriters for DreamWorks Animation SKG Inc., producer of the blockbuster "Shrek" movies, set the terms Oct. 12 of the company's pending initial public offering. The company will offer 29 million co

Washington (AP) -- Underwriters for DreamWorks Animation SKG Inc., producer of the blockbuster "Shrek" movies, set the terms Oct. 12 of the company's pending initial public offering. The company will offer 29 million common shares, with an estimated price range of $23-$25 apiece.

DreamWorks Animation, based in Glendale, Calif., is being spun off by its parent, DreamWorks LLC, the studio controlled by Hollywood moguls Jeffrey Katzenberg, David Geffen and Steven Spielberg.

On July 21, DreamWorks filed for an IPO of up to $650 million in common stock but did not detail the terms of the offering.

According to an amended filing with the Securities and Exchange Commission, the company will offer roughly 25 million common shares. Selling holders are offering about 4 million.

For the three months ended Sept. 30, the company expects revenue of $230 million-$240 million and operating income of $25 million-$30 million, according to the filing.

DreamWorks said its revenue in the quarter was primarily derived from "Shrek 2" and from continuing revenue from its library of films.

The company said it plans to retain about $175 million of the net proceeds from the IPO for general corporate purposes, including working capital, and will use the remaining net proceeds to repay all or a portion of the debt that it intends to assume from DreamWorks Studios in connection with its separation.

DreamWorks listed 12 underwriters in the filing, including Goldman Sachs, J.P. Morgan Securities and Banc of America Securities.

The company said it plans to list its common stock on the New York Stock Exchange under the symbol DWA.