NEW HAVEN, Conn. – DSL.net Inc., a provider of high-speed Internet access, went public October 6, offering 7.2 million shares at $7.50 apiece. The company’s stock priced at the low end of its $7.50 to $8.50 filing range.
Underwritten by Deutsche Banc Alex. Brown, Donaldson, Lufkin & Jenrette, Lehman Brothers and DLJdirect Inc., the initial public offering left 57.3 million shares outstanding.
There were no selling shareholders. Venture backers included VantagePoint Venture Partners, Prism Venture Partners, Oak Investment Partners and Shipman & Goodwin.
DSL.net provides small- and medium-size businesses with high-speed data communications and Internet access services using digital subscriber line (DSL) technology.
DSL.net plans to use the expected $48.7 million generated from the IPO for working capital and for general corporate purposes, including enhancing its network. The company will use the proceeds to create a public market for common stock, enhance its ability to use common stock as a means of attracting, motivating and retaining key employees, and to facilitate future access to public equity markets. The company also might use a portion of the proceeds to acquire complementary businesses.
DSL.net has never been profitable, losing $6.5 million in the six months ended June 30.
William Marshall, a managing partner at VentagePoint, joined the company’s board of directors in January. James Marver, a managing partner at VantagePoint, and William Seifert, a general partner at Prism, both followed in April.
DSL.net – Selected Financial
(in thousands, except per share data)
March 3, 1998 (inception) March 3, 1998 (inception) Six Months Ended
to December 31, 1998 to June 30, 1998 June 30, 1999
Total revenue 31,533 3,489 184,173
Net loss -2,789,637 -2,741 -6,497,247
Net loss per share -0.55 -2.02