DENVER – High Speed Access Corp., a high-speed broadband Internet access provider, went public June 4. The company offered 13 million shares at $13 apiece, the high end of the company’s $11 to $13 filing range.
Lehman Brothers, J.P. Morgan & Co., Banc of America Securities L.L.C. and CIBC World Markets underwrote the initial public offering, which left 51.84 million shares outstanding.
There were no selling shareholders. Vulcan Ventures Inc., Broadband Solutions, River Cities Capital Fund, IWB Investments, Chrysalis Ventures and Saunders Capital Group were venture backers.
High Speed Access provides high-speed Internet access to residential and commercial customers of cable systems with fewer than 100,000 customers. Cable companies in these areas can outsource their Internet service business to High Speed Access for a minimal cost. The company pays its cable operator partners a portion of the monthly fees charged to end-users. Charter Communications Inc., owned by Vulcan Ventures and one of the 10 largest cable companies in the United States, agreed to provide the company with exclusive access to at least 750,000 homes and has an equity incentive to provide as much as 5 million more.
The net proceeds from the IPO and a sale of $18.5 million of its stock to Cisco Systems Inc., Com 21 Inc. and Microsoft Corp. will total approximately $174.1 million, which will be used for general corporate purposes.
The company, founded in April 1998, has lost nearly $18 million since its inception.
David Jones, Jr., chairman of Chrysalis Ventures, and Robert Saunders, senior managing director of Chrysalis, have led the company’s board of directors since April 1998 as Chairman and Vice Chairman of the board. Irving Bailey, II, president of Bailey Capital Corp., and William Savoy, vice president of Vulcan Ventures, joined the company’s board in April 1998 and November 1998, respectively.
High Speed Access – Selected Financial
(in thousands, except per share data)
April 3, 1998 (inception) Three Months Ended
to December 31, 1998 March 31, 1999
Net revenue 337 299
Net loss -9,975 -8,037
Net loss per share -21.07 -18.35