FORT WORTH, Texas – FlashNet Communications Inc., an Internet service provider, went public March 16, offering 3.1 million shares at $17 a piece. Stocks priced well above the company’s $14 to $15 filing range.
The offering, underwritten by BancBoston Robertson Stephens, J.C. Bradford & Co. and EVEREN Securities Inc., left 13 million shares outstanding.
Venture investors included Texas Ltd., Fourteen Hill Capital, ISP Investors, Kleinheinz Capital Partners and Applied Telecomunnications Technologies Inc.
Founded in September 1995, FlashNet maintains a national computer service network that offers Internet access to subscribers in 450 cities through 621 local telephone numbers. The company services approximately 180,000 customers, including 3,000 businesses.
FlashNet has posted $30 million in losses since its inception, including $11 million in 1997 and $10 million in 1998.
Proceeds from the IPO, estimated at $50 million, will be used to expand sales operations and infrastructure and for other general corporate purposes.
John Kleinheinz, founder of Kleinheinz Capital Partners, and Kevin Stadtler, vice president with Allied Telecommunications Technologies Inc., have been company directors since January 1996 and August 1998, respectively. James Francis, managing partner of Texas Ltd., joined the board in December 1998.
FlashNetCommunications – Selected Financial
(in thousands, except per share data)
Period from September 25, 1995
(Inception) Year Ended December 31
through December 31, 1995 1996 1997 1998
Total revenue 34 3,654 17,537 26,892
Net loss attributable to common shareholders
-107 -6,054 -11,688 -13,006
Basic and diluted net loss per share-0.1 -1.15 -2.15 -2.36