GIBG looks good
Egreetings Network Addresses Wall Street With $75 Million IPO
Electronic greeting card provider and gift merchant Egreetings Network Inc. delivered plans to offer up to $75 million of common stock in an initial public offering.
The size and price range of the IPO were not disclosed in the documentation released by the SEC yesterday, but will be provided in a subsequent filing.
Egreetings specializes in digital greeting cards that consumers can customize and send for free on the Web.
In September, Egreetings' Web site was visited more than 9.6 million times, generating over 98 million page views with users sending over 3.4 million digital greetings, the company said.
Egreetings had revenues of $724,000 for the six months ended June 30, with revenues increasing to $621,000 in the second quarter from $103,000 in the first quarter.
The jump in revenue is due to a recently revised business model -- Egreetings previously charged for its digital cards and now offers the greetings for free, switching to an advertising- and sponsorship-based model.
Interestingly, Egreetings referred to its service as "viral in nature," as each greeting sent creates an opportunity to acquire the recipient as a new user.
Egreetings shareholders include offline greeting card notable Gibson Greetings (GIBG) (an Egreetings content provider), which owns a 27.8% stake, and Paul Allen's Vulcan Ventures, with a 5.9% holding.
Net proceeds from the offering, which were not estimated, will be used for increased sales and marketing activities, content acquisition, expansion of the company's network architecture and brand building.
The company's cyber storefront is located at www.egreetings.com.
Credit Suisse First Boston and Robertson Stephens will co-manage the offering.
IPO Expectations:
Price per share:
Unknown
Shares being offered:
Up to $75 million of common stock
Shares to be outstanding:
Unknown
Company location:
San Francisco, Calif.
Exchange/Symbol:
Nasdaq/EGRT
Underwriter(s):
Credit Suisse First Boston; Robertson Stephens; U.S. Bancorp Piper Jaffray
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