This article was posted on Briefing.com not to long ago, interesting!
I haven't checked on the previous posts to see if it had been posted before.
04-Jun-99 12:00 -- 13:00 ET
INTERNET IPOs:: In the Internet IPO game, timing is everything. A late rally in Internet stocks on Wednesday gave a host of Internet companies the signal to proceed with their initial public offerings, instead of delaying the deals for another week or more. Last night, five offerings were priced: Wit Capital Group (WITC 16 +7), 7.6 mln shares at $9: High Speed Access Corp. (HSAC 19 3/8 +6 3/8) 13 mln shares at $13; Network Access Solutions Corp. (NASC 12 unch), 7.5 mln shares at $12; F5 Networks (FFIV 13 1/4 +3 1/4), 3 mln shares at $10; and Online Resources & Communications Corp (ORCC 14 1/8 +1/8) 3.1 mln shares at $14... But only two of the offerings fall into the high-profile category: Wit Capital Group and High Speed Access Corp. (For Briefing.com comments on the Wit Capital offering, see May 02 Story Stocks)...Denver, CO-based High Speed Access Corp. is a provider of cable-based Internet access services. With total 1998 revenue of only $450,000, the company doesn't look like much from a distance. But closer inspection reveals one of the most intriguing deals to hit the market this year. High Speed Access, even more so than most Internet offerings, is a story of potential. The key to this deal is billionaire Paul Allen. Not only does the Microsoft co-founder's hold a 54.2% stake in HSAC (through his Vulcan Ventures fund), but Mr. Allen and has team have signed on several tech heavyweights as allies. Concurrently, with the initial public offering,Microsoft (MSFT) and Cisco Systems (CSCO) will, respectively, purchase $10 mln and $7.5 mln of HSAC common stock. But the most important of the company's supporters (next to Mr. Allen, of course) is Charter Communications, one of the nation's ten largest cable system operators. Charter, which is also owned by Vulcan Ventures, has agreed to provide HSAC with exclusive access to at least 750,000 homes passed, and has an equity incentive to provide up to an additional 5 million homes passed. Charter has warrants to purchase up to 7.75 million shares of HSAC common stock at an exercise price of $3.23 per share.
Long on HSAC,
regards
Giota
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