PALO ALTO, Calif. – Chemdex Corp., an e-commerce solutions provider, went public July 26, offering 7.5 million shares at $15 apiece. The company’s stock priced above its $12 to $14 filing range.
Underwritten by Morgan Stanley Dean Witter, BancBoston Robertson Stephens and Volpe Brown Whelan & Co., the initial public offering left 31.76 million shares outstanding.
Venture backers included Kleiner, Perkins, Caufield & Byers VII, Warburg, Pincus Ventures, The Bay City Capital Fund, CMG@Ventures, VWR Scientific Products Corp. and Galen Associates.
Chemdex provides life sciences companies with e-commerce solutions with its Chemdex Marketplace, a secure Internet-based purchasing solution that allows enterprises, researchers and suppliers to buy and sell research products. The service uses an advanced search engine and software that enables users to easily identify, locate and purchase life sciences research products.
Chemdex will use the estimated $103.6 million in proceeds from the offering for general corporate purposes. The company has never been profitable, losing $8.5 million in 1998.
Brook Byers, a general partner at Kleiner Perkins, joined the board of directors in May 1998 and became chairman in March. Jonathon Callaghan, a general partner of CMG, joined the company’s board of directors in September 1997, followed in May 1998 by S. Joshua Lewis, a managing director of E.M. Warburg, Pincus & Co.
Chemdex – Selected Financial
(in thousands, except per share data)
September 4,1997 (inception) Year Ended Three Months Ended March 31,
to December 31, 1997 December 31, 1998 1998 1999
Revenue – 29 – 165
Net income (loss) -403 -8,488 -793 -6,809
Net income (loss) per share -0.24 -4.79 -0.47 -3.38