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Alloy Online Rises 33 Percent in First Day Trading
New York, May 14 (Bloomberg) -- Alloy Online Inc., an Internet site for people between the ages of 10 and 24, rose 33 percent in its first day of trading.
The New York-based company rose 5 to 20 as 9.3 million shares traded on the Nasdaq Stock Market. The company closed with a market value of $284.6 million after selling a 26 percent stake yesterday.
Alloy Online's Web site provides an Internet community where young people can interact, find and share information, and shop, the company said in its filing with the Securities and Exchange Commission. ''Alloy has great sales growth (and) a young, energetic management team,'' said Brad Cohen, an analyst with Sands Brothers & Co. who covers ITurf Inc., another Web site that targets 10- to 24-year-olds. Iturf, the online unit of clothing retailer Delia's Inc., went public in April.
Alloy's revenue jumped to $10.2 million in the year ended Jan. 31 from $1.8 million the previous year, the company said in its SEC filing. It lost $6.4 million last year, up from $1.9 million. Most of Alloy's revenue comes from merchandise sales.
Matthew Diamond, 30, is the company's chief executive, and James Johnson, 31, is its president and chief operating officer. Diamond and Johnson each have stakes worth $27.1 million at today's close. 'Generation Y'
The market Alloy serves, which it calls ''Generation Y,'' is comprised of 56 million young people and is the fastest-growing segment of the U.S. population, Cohen said. ''It's a very dynamic segment of the population,'' he said.
ITurf has a headstart on Alloy Online because of its relationship with Delia's, Cohen said.
Alloy Online's Web site, www.alloy.com, generated 25 million page views in March, up from about 1.5 million in March 1998, the company said. A page view is a page downloaded from a Web site.
The company said it has 480,000 users who registered to receive its biweekly magazine, Alloy E-Zine. It also said it has a database of about 2.2 million names and expects to mail 20 million catalogs in 1999.
Alloy Online trades under the symbol ''ALOY.'' BancBoston Robertson Stephens handled the sale, with assistance from Volpe Brown Whelan & Co., Dain Rauscher Wessels, and Ladenburg Thalman & Co. |
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