Price between 9.00 - 11.00
RealNetworks aims to raise $37 million in IPO
SEATTLE, Oct 16 (Reuters) - RealNetworks Inc., the Seattle-based software company that helped popularize sound over the Internet, hopes to raise up to $37
million in its initial stock offering, according to documents.
The offering, first disclosed last month, would value the company at a minimum of $280 million and up to $450 million if options are exercised by employees and
software giant Microsoft Corp., which already holds a 10 percent stake.
RealNet plans to offer 3.45 million shares at between $9 and $11 each including an allotment reserved for underwriters, according to an amended registration form
filed with the Securities and Exchange Commission Tuesday.
After expenses the sale would raise a maximum of $37 million for the company, the leader in multimedia Internet ''streaming'' technology with products including
RealAudio and RealVideo.
After the offering RealNet, formerly known as Progressive Networks, would have about 31.4 million shares outstanding, if underwriters exercise their overallotment.
But that excludes 6.4 million shares that could be issued on exercise of outstanding employee stock options priced at $1.80 a share. Also excluded are 3.7 million
shares that could be purchased by Microsoft at $13.48 a share under an option that expires at the closing of the public offering.
Microsoft already owns 3.3 million shares of convertible preferred stock -- or about 10 percent of the company -- for which it paid about $30 million this year.
Even at the minimum proposed offering price the valuation is relatively rich at more than nine times projected 1997 sales of $30 million, according to an analyst who
did not want to be identified.
When the options are included, the valuation soars to 15 times earnings, compared with 7.5 for Netscape Communications Corp. and 12 for mighty Microsoft. |
