E*Trade will get shares....see the bold below.
Talk City to offer 4.5 mln IPO shares at $8-10/shr
Reuters Story - June 07, 1999 13:24
WASHINGTON, June 7 (Reuters) - Talk City Inc., which operates a network of online
communities, said Monday it planned an initial public offering of 4.5 million common shares at
an expected price of $8-10 per share.
The Campbell, Calif., company said in an amended Securities and Exchange Commission filing,
which had more details about the IPO than the first filing on April 30, that if there were big
demand for the shares, the underwriters would have an option to buy 675,000 more shares.
The underwriters are Lehman Brothers, Volpe Brown Whelan and U.S. Bancorp Piper Jaffray,
with Internet distribution handled by E*Trade.
The shares are expected to begin trading early next month on Nasdaq under the symbol
"TCTY" . The 4.5 million shares represent 19 percent of the total common shares that Talk City
will have outstanding after the offering.
The company plans to use estimated net proceeds of $36.6 million for general corporate
purposes, mainly brand promotion, and sales and marketing expansion.
Talk City, which offers businesses a wide range of interactive services to help them develop
relationships with customers, suppliers and employees, is located online at
talkcity.com and onnow.com.
In March 1999 it had 2.6 million visitors to its community, the company, citing industry figures,
said. During its peak early evening periods, it had over 18,000 users simultaneously chatting or
engaging in other interactive activities.
Revenues increased to $980,000 for the three months ended March 31, from $125,000 in the
same period in 1998. Revenues were $1.5 million in 1998, $208,000 in 1997 and $14,000 in
1996, the SEC filing said.
Talk City had net losses of $6.9 million for the three months ended March 31, $15.7 million in
1998, $6.4 million in 1997 and $1.3 million in 1996.
Major shareholders of the company include affiliates of National Broadcasting Co., the
television network unit of General Electric Co. , which will hold a 10 percent stake after the
IPO, and coffee company Starbucks Corp. , which will hold 4.2 percent.
A 15-member group of Talk City's officers and directors will collectively hold 46.3 percent |
