CAMBRIDGE, Mass. – Akamai Technologies Inc., an Internet content delivery service provider, went public October 29, offering 9 million shares at $26 apiece. The stock priced well above its $21 to $23 filing range.
Morgan Stanley Dean Witter & Co., Donaldson, Lufkin & Jenrette Securities Corp., Salomon Smith Barney and Thomas Weisel Partners L.L.C. underwrote the offering, which left 90.4 million shares outstanding.
Battery Ventures, Baker Capital Partners and Polaris Venture Partners L.L.C. were venture backers. There were no selling shareholders.
Akamai analyzes Web traffic and transmits content over the most efficient route through a network of 1,200 servers in 24 countries. The company markets its service directly to its target audience: the 300 busiest company Web sites in the United States, as well as Fortune 100 companies.
Akamai anticipates using the $216.5 million in net proceeds from the offering for working capital and for general corporate purposes, including, but not limited to, the acquisition of complementary businesses, products or technologies.
Akamai has never been profitable, losing $890,000 from inception through December 31, 1998 and $28.3 million in the nine months ended September 30.
Todd Dagres, a partner at Battery, joined the company’s board of directors in November 1998. Terrance McGuire, a partner at Polaris, and Edward Scott, a partner at Baker, joined in April.
Akamai Technologies – Selected Financial
(in thousands, except per share data)
August 20, 1998 (inception) Nine Months Ended
Through December 31, 1998 Sepember 30, 1999
Total revenue 1,287
Net loss -890 -28,324
Net loss per share -0.06 -1.47