July 14, 1999 15:07
NetZero Inc. Files $115M Of Stock For IPO, Compaq
Has 8.7% Stake
(NewsTraders.com)-- NetZero Inc. is registering to sell $115 million worth of
common stock in an initial public offering, according to an SEC filing released
this afternoon.
The exact number of shares or an estimated price range were left blank in the
preliminary filing, which is common practice for IPO hopefuls.
NetZero says it is pioneering a new Internet service model that provides
consumers with free access to the Internet while offering online advertisers a
way to target those users.
The company, whose service is available in over 1,100 cities nationwide, has
signed up 1.17 million users since launching in October 1998. In June alone,
613,000 of those users accessed NetZero's service and were delivered over
830 million advertising impressions.
NetZero plans to use the proceeds from the offering for general corporate
purposes: principally working capital, capital expenditures and possible
acquisitions.
For the three months ended March 31, the Westlake Village, Calif., company
posted a net loss of $5.1 million on $781,000 in revenues.
The directors and officers, which amount to 10 people, collectively own 77.4%
of the company before the IPO. An affiliate of Compaq Computer (CPQ)
currently holds an 8.7% interest.
Goldman Sachs is leading the underwriting effort.
IPO Expectations:
Price per share: Unknown
Shares being offered: $115 million of stock
Shares to be outstanding: Unknown
Company location: Westlake Village, Calif.
Exchange/Symbol: Nasdaq/NZRO
Underwriter(s): Goldman Sachs; Donaldson Lufkin Jenrette; Hambrecht Quist;
Wit Capital
Copyright 1999 NewsTraders Inc. All Rights Reserved 16:05 Wednesday, July
14, 1999 |
