In a mammoth 100 million share offering that was the largest IPO so far this year, the government sold its entire stake in its uranium enrichment operation, called USEC Inc. So far in 1998, the largest IPO in 1998 has been Republic Services Inc.'s $1.33 billion IPO. The IPO was priced at $14.25, in the lower end of its expected price range of $13.50 to $16.50, and closed unchanged on the New York Stock Exchange.

But analysts said the deal was a success because lead under writers Morgan Stanley Dean Witter and Merrill Lynch were able raise the money expected from the mammoth deal in a market that favours smaller IPOs by technology companies."A hundred million shares in this market, that's a marvellous job," said John Fitzgibbon, editor of the IPO Reporter newsletter.Uraniumenrichment is a step in the process of turning uranium into fuel for nuclear reactors to produce electricity.

USEC controls 70 percent of the North American market, with its biggest competitors being consortia comprised of European companies.

The government had been planning to privatise the business since 1992, and the Treasury had included proceeds from the sale in its 1998 budget. In addition to the $1.425 billion raised in the IPO, the company is borrowing $500 million to give to the Treasury.

Despite the windfall for the government, the privatisation has drawn criticism by government officials who worry the operation will wind up in foreign hands and jeopardise National security. One rule in the IPO was that only 10 percent of the stock could be sold to foreign investors.

Also, the deal had riled members of the oil, chemical and atomic workers Union, who believe 2,500 jobs may be axed as a result of the sale.

And about a week before the IPO, a consortia led by Lockheed Martin Corp. renewed anearlier all-cash $1.9 billion offer for the company.