NEW YORK – Alloy Online Inc., an Internet service provider for teens and young adults, filed to go public March 10. An offering size and filing range have not yet been established.
The underwriters for the deal include BancBoston Robertson Stephens, Volpe Brown Whelan & Co., Dain Rausher Wessels and Ladenburg Thalmann & Co.
There are currently no selling shareholders. Venture investors include Brand Equity Ventures and Ladenburg Thalmann & Co.
Alloy Online, founded in January 1996, develops and markets a Web site for 10- to 24-year-olds, also known as Generation Y. Its home page offers free e-mail, chat rooms and merchandise from various venders. Items that can be purchased online include apparel, footwear, accessories, cosmetics, music and magazines. Topics on www.alloyonline.com include homework assistance, relationship advice and horoscopes. Alloy E-Mag, the company’s electronic magazine, has approximately 400,000 subscribers.
Alloy Online earned $1.8 million in 1997 and $10.2 million in 1998. The company does not focus on generating revenues from sponsorship or advertising sales, and instead concentrates on merchandise sales. Proceeds from the sale will be used to expand national marketing campaigns, improve systems infrastructure, repay debt and other general corporate purposes.
The company has never paid dividends to stockholders because of the ongoing development of its Web site and operating infrastructure. Alloy Online suffered net losses of $118,000 in 1997, $1.9 million in 1998 and $6.4 million in 1999.
Peter Graham, a managing member of Landenburg Thalmann & Co., has been a member of the company’s board since November 1998, followed by David Yarnell, a managing member of Brand Equity, in December 1998.
Alloy Online – Selected Financial
(in thousands, except per share data)
Year Ended January 31,
1997 1998 1999
Revenue 25 1,800 10,210
Net loss -118 -1,865 -6,364