Divine Interventures Inc. said Monday it increased the number of shares in its initial public offering to 65.9 million from 50 million to meet demand for the year-old Internet holding company.

The offering for the Lisle, Ill.-based company, which invests in infrastructure service providers, market makers and consumer e-commerce companies, could generate proceeds of $461 million, up from $350 million, based on a per share price of $7. The range for the IPO has been pegged between $6 and $8.

In an amended regulatory filing with the Securities and Exchange Commission, the company said about 20 million of the shares will be offered to the public and the rest will be placed privately.

The company also has another 3 million shares it could offer depending on market conditions and demand.

Divine plans to use net proceeds to repay debt, contribute to its 54 associated companies, purchase property for a new facility, acquire companies and fulfill agreements with its business partners, which include Microsoft Corp. and Compaq Computer Corp.

The company is expected to have its IPO in late April. A source told Reuters that Divine is finalizing plans for its road show for investors, a process that usually takes a couple of weeks.

Divine said in the filing that Compaq agreed to invest $50 million and Microsoft agreed to add $50 million to the $25 million investment it made previously in exchange for shares. Computer hardware company Hewlett-Packard Co. , Internet consultant firm MarchFirst Inc. and the world's No. 2 insurance broker Aon Corp. each agreed to buy $25 million in shares.

CMGI Inc. , which is also a Divine competitor, increased its total investment to $65.8 million, in order to maintain the 4.9 percent stake it had before Divine increased the number of shares.

Compaq and CMGI have been nominated for seats on Divine's board, which includes executives from Microsoft, Dell Computer Corp. (DELL.O), and other brand-name companies as well as former Chicago Bulls basketball star Michael Jordan.

Divine said it has entered into commercial agreements with many of these companies. For example, it agreed to promote Microsoft software, designate Hewlett-Packard as a preferred supplier of some hardware and software, and designate Compaq as a supplier for other hardware.

According to the filing, Divine must open a Seattle office within 60 days of its IPO to fulfill an agreement with Microsoft.

The company said it currently has 654 employees including employees at its majority-owned associated companies, and it plans to add at least another 1,040 employees by the end of the year.

Divine also plans to expand internationally through partnerships with capital and infrastructure service providers around the world.

Divine said it has already bought an interest in LAUNCHworks in Calgary and Emicom Group in Israel. It has also agreed to acquire an interest in a new company in Latin America that would provide capital and strategic services. Divine is considering expanding to the Far East within the next three months.