SUNNYVALE, Calif. – EGain Communications Corp., a provider of customer service infrastructure for e-commerce companies, went public September 23, offering 5 million shares at $12 apiece. The company’s stock priced above its $9 to $11 filing range.
Underwritten by BancBoston Robertson Stephens, Donaldson, Lufkin & Jenrette and Volpe Brown Whelan & Co., the initial public offering left 27.8 million shares of stock outstanding.
FW Ventures was the sole venture backer. There were no selling shareholders.
EGain’s software products and related services help clients improve Internet-based customer service. Its eGain e-mail management system software helps customer service departments route, track and reply to information requests and other customer e-mails sent to their Web sites.
The company plans to use the expected $54.8 million generated from the IPO to obtain additional capital, create a public market for common stock, increase visibility and credibility and facilitate future access to public equity markets. EGain also will use a portion of the proceeds for working capital and for other general corporate purposes, including product and service development, and expansion of its hosted network. The company may use a portion of the proceeds to acquire or invest in businesses, products, services or technologies that complement its business.
EGain has never been profitable, losing $11.3 million in 1999.
eGain Communications – Selected Financial
(in thousands, except per share data)
September 10, 1997 (inception) Year Ended
to June 30, 1998 June 30, 1999
Total revenue 2 1,019
Net loss -938 -11,305
Net loss per share -0.93