Drugstore.com files IPO specifics
By Bloomberg News
Special to CNET News.com
June 29, 1999, 11:30 a.m. PT
update
Drugstore.com hopes to sell 5 million common shares
for $9 to $11 each, the company said in a filing that
provided new details on the size of its planned initial
public offering.
The Bellevue, Washington, online retailer of drugs and
health care products filed with the Securities and
Exchange Commission last month to raise as much as
$67.5 million. The company filed an amended
registration statement yesterday that provided a more
specific estimate on the size of the offering.
Drugstore.com will have 42.8 million shares
outstanding after the stock sale. If 5 million shares are
sold, new investors would be offered almost 12 percent
of the company's common stock. If the shares sell for
$11 each, Drugstore.com's initial market value would
exceed $470 million.
The company expects the stock sale to raise $45.5
million after expenses, assuming a share price of $10.
The company expects to use up to half of the proceeds
for capital expenditures associated with technology
and system upgrades, with the remaining funds
devoted to general corporate purposes and working
capital.
The updated filing comes one week after
Drugstore.com announced deals with Rite Aid and
General Nutrition Centers, revealing the affect on
Amazon's stake in the company. Rite Aid acquired
25.4 percent of Drugstore.com for $7.6 million and
GNC bought 8 percent for $2.5 million; both
purchases were made in cash.
The deals diluted Amazon's stake in the company
from 43.8 percent to 29.2 percent. After
Drugstore.com's public offering, Amazon, Rite Aid
and General Nutrition Centers will own 27.4 percent,
21.8 percent and 6.9 percent of the company,
respectively.
Other major stock holders include venture capital firms
Kleiner Perkins Caufield & Byers and Vulcan
Ventures, which currently own 19.1 percent and 6.2
percent of the company, respectively.
Drugstore.com's company president Peter Neupert
currently owns 5 percent. After the offering, Kleiner
Perkins will own 16.4 percent, Vulcan 5.3 percent, and
Neupert 4.3 percent.
<ibAll of the major shareholders will retain the same
number of shares after the offering, except Amazon,
which will acquire $10 million worth of stock at the set
price.
(Source:Bloomberg via CNET) |
