From Reuters:
news.cnet.com
Linux Internet site files for public offering
By Reuters
Special to CNET News.com
September 16, 1999, 5:40 p.m. PT
WASHINGTON--Andover.Net, an Internet site for Linux and other software programming projects, filed to raise $49.6 million in an initial public offering, a Securities and Exchange Commission filing said.
The Acton, Massachusetts-based company offers products, online tools, news, and other services for the Linux operating system and other "open source" communities. Under the open source model, anyone may contribute to the software coding.
The firm is the latest in a string of Linux-related companies to file for or sucessfully launch a public offering. Cobalt Networks, a manufacturer of server appliances based on Linux, plans to raise as much as $86 million in its IPO. Software firm Red Hat has seen its shares skyrocket following its public offering in August.
Andover.Net plans to sell 4 million shares as part of the IPO and will have 15 million shares outstanding once the sale is completed, the filing said.
Since June, Andover acquired two Web sites that run heavy to Linux news and discussion. In June Andover acquired Slashdot, and in August, the company acquired Freshmeat.
The company, which said it has 2 million visitors to its Web site each month, didn't disclose in its SEC filing the estimated price range for the shares. Typically, companies file subsequent documents with more information.
Andover.Net said it plans to use the estimated $49.6 million in proceeds it hopes to raise in the IPO to redeem its outstanding Series A preferred stock worth an estimated $4.7 million and use the remaining funds for potential acquisitions, expanding sales, marketing, and research and development activities.
With most of its revenue coming from advertising by computer giants like IBM and Compaq Computer, the company posted $7.3 million in net losses during the nine months ending June 30, the filing showed.
The company is run by chief executive officer Bruce Twickler, who founded the company in 1992 and worked as a consultant to Dragon Systems and Avid Technologies beforehand.
The underwriters, WR Hambrecht & Co., Advest Inc. and DLJdirect Inc., have been allotted 600,000 shares in the event of heavy demand.
Andover.net applied to sell its shares on Nasdaq under the symbol "ANDN." |
