BELLEVUE, Wash. – ImageX.com Inc., an Internet-based business-to-business intermediary in the U.S. commercial printing industry, went public August 26, offering 3 million shares at $7 apiece. The company’s stock priced exactly at its filing price.
Underwritten by Volpe Brown Whelan & Co., Prudential Securities and E*Trade Securities Inc., the initial public offering left 16.1 million shares of stock outstanding.
There were no selling shareholders. Venture backers included Acorn Ventures Inc., Internet Ventures, Technology Partners, Alta Partners, Vanguard Venture Partners and SunAmerica Investments Inc.
ImageX.com provides businesses with access to a customized, secure Web site called the Online Printing Center, which contains a digital catalog of the client’s custom-printed business materials. The customer can then modify, proof, procure and manage its printed business materials from marketing brochures to stationery and business cards.
The company plans to use the expected $18.3 million from the IPO to repay debt and for capital expenditures, working capital, expanding sales and marketing efforts, general and administrative expenses and product development. The company also may use some of the proceeds to acquire additional businesses.
ImageX.com has never been profitable, losing $3.6 million in 1997 and $8.6 million in 1998.
John Ardell, III, a general partner of Technology Partners, joined the company’s board in December 1996. Garrett Gruener, a general partner of Alta Partners, joined in April.
ImageX.com – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Six Months Ended June 30
1996 1997 1998 1998* 1999*
Total revenue 79 87 968 300 3,326
Net loss -463 -3,570 -8,601 -3,947 -5,612