Anthony & non-NCAA watching followers: This article in DJ News is about the MiningCo.com IPO and a company called OTEX, who own 10% of them. A little DD follows these news items.
MiningCo.Com Inc. is expected to price its shares on Tuesday and begin trading on Wednesday, a source near the deal said. According to filings, the price talk is $12 to $14 a share, but the price could be raised, the source said.
Bear Stearns & Co., Volpe Brown Whelan & Co. and Wit Capital are putting the initial public offering together. MiningCo.Com will offer 3 million shares, giving the company 11.55 million shares outstanding, including a private placement at the time of the IPO, according to filings.
Many Open Text Corp. (OTEX) investors have known about Open Text's stake in MiningCo.Com, but the stock appears to have risen on the rumors that the offering will indeed take place next week. Internet IPOs have done extremely well recently, so the offering should give Open Text a large paper profit. MiningCo.Com runs an Internet site network is based in New York.
-By Scott Adams;416-943-7800; scott.adams@dowjones.ca
(END) DOW JONES NEWS 03-18-99
This is a quick blurb about OTEX from MarketGuide:
OTEX markets, develops, licenses and supports
mgmt. application software for use in intranets,
extranets and the Internet. The software enables
users to find electronically stored information, do
group calendaring and scheduling and distribute the
resulting work product. For the 3 mos. ended 9/98,
revenues rose from $7.7M to $17.3M. Income
totalled $2.3M vs. a loss of $1.5M. Results reflect
reseller programs expansion and an increase in
maintenance service revenues.
Both companies lose money but are up and coming players in the internet world. OTEX has about 42 Mill in assets and goes for 23 1/2 a share. They can add 10% of the IPO proceeds to that balance sheet. Let's say the IPO (3 million shares) raises 100 Mill, certainly a possiblity, OTEX makes 10%. Bottom line: I'm betting the hype surrounding this anticipated IPO jacks the price of OTEX up past the 52wk high of 31 3/4. Any thoughts or opinions would be appreciated. |
