New York – HotJobs.com Ltd., an Internet-based recruiting solutions company, held an initial public offering August 10. The company offered 3 million shares at $8 apiece, lower than its $9 to $11 filing range.
Deutsche Banc Alex. Brown, BancBoston Robertson Stephens, SG Cowen and E*OFFERING underwrote the initial public offering, which left 26.6 million shares outstanding.
Venture Investors included OTEC Inc., Generation Capital Co., Bessemer Venture Partners, Boston Millennia Partners, GreenAcre Ventures and FSA Capital Inc. There were no selling shareholders.
HotJobs.com provides a direct exchange of information between job seekers and employers through its www.hotjobs.com system. Member employers can post, track and manage job openings, as well as access a database of more than 450,000 job seekers.
The expected $20.8 million generated by the IPO will be dedicated to increasing sales and marketing efforts, developing infrastructure, boosting products and services, obtaining additional office space, hiring additional personnel and for other general corporate purposes.
The company has never been profitable, losing $945,000 in 1997 and $2.3 million in 1998.
Richard Johnson, a co-founder of OTEC Inc., founded HotJobs.com and has served as its president, chief executive officer and chairman since its inception in February 1997. John Hawkins, co-founder of Generation Partners, joined the company’s board of directors in May.
HotJobs.com – Selected Financial
(in thousands, except per share data)
Period from February 20, 1997 (inception) Year Ended Three Months Ended March 31
to December 31, 1997 December 31, 1998 1998* 1999*
Total revenue 397 3,512 397 2,649
Net loss -945 -2,257 -575 -2,216,
Net loss per share -0.04 -0.11 -0.03 -0.11