Taken from DBC...
"Three new issues overshadowed by @Home's IPO
Three companies made little noise on their U.S. stock market debuts Wednesday as all eyes remain on Internet service provider @Home, which according to lead underwriter Morgan Stanley is scheduled to price Thursday for trading by the end of the week.
"After (@Home), what else do you need?" said John Fitzgibbon, editor of the IPO Aftermarket. Fitzgibbon expects a three to five-point opening premium for @Home, which wil trade under the ticker symbol "ATHM."
@Home, started by John Doerr and William Randolph Hearst III, both of the Kleiner Perkins Caufield & Byers venture capital firm, hopes to be the leading provider of Internet services via the cable infrastructure by leveraging its privately owned "parallel Internet" network, which the company says can transfer information at up to 300 times the speed of a 28.8K modem.
The company plans to offer 8 million shares between $7 to $9 each. For the three months ended March 31, 1997 the company lost $11.7 million on $806,000 in revenue. According to the company's June 20 filing with the SEC, @Home only has 6,000 paying subscribers. At an $8 trading price, the company will have a market value of almost $950 million, not including outstanding options. Morgan Stanley is the lead underwriter." |
