SAN FRANCISCO – Critical Path Inc., a provider of e-mail hosting services, went public March 29. The stock priced at $24, well above the $20 to $22 filing range. The company offered 4.5 million shares.
Underwriters for the initial public offering, which left 34 million shares outstanding, include BancBoston Robertson Stephens Inc., Hambrecht & Quist, Dain Rauscher Wessels and First Albany Corp.
Venture investors were Benchmark Capital Partners II, Mohr, Davidow Ventures V, CMG@Ventures II, US West Data Investments Inc. and E*TRADE Group Inc. There were no selling stockholders.
Critical Path, founded in February 1997, maintains e-mail hardware, software and administrative support for users in four target markets, which include Internet service providers, Web portals, Web hosting companies and corporations. The company’s customers include US Online Network, Sprint and US West.
Proceeds from the $108 million IPO will be used to open additional data centers, expand international operations and for general corporate purposes.
Kevin Harvey, general partner of Benchmark Capital, has been a director since January 1995. George Zachary, partner at Mohr, Davidow Ventures II, joined the board in January 1996.
Critical Path – Selected Financial
(in thousands, except per share data)
Period from February 19, 1997
(Inception) to December 31, 1997Year Ended December 31, 1998
Net revenue 0 897
Net loss -1,074 -11,461
Net loss per share -0.54 -2.94