SAN FRANCISCO – Egreetings Network Inc., a digital greeting card company, went public December 17, offering 6 million shares at $10 apiece. The company’s stock priced at the top of its $8 to $10 filing range.
Underwritten by Credit Suisse First Boston, BancBoston Robertson Stephens and U.S. Bancorp Piper Jaffray, the initial public offering left 34.4 million shares outstanding.
There were no selling shareholders. Venture backers included NBC-EGRT Holding Inc., Weiss Peck & Greer Venture Partners, Altos Ventures, Gibson Greetings Inc., New Enterprise Associates and Vulcan Ventures Inc.
The company provides more than 4000 free digital greeting cards on its Web site. Once registered, users can personalize and e-mail cards with the option of buying a gift through the company’s e-commerce partners, which include Godiva Chocolatier.
The $54.3 million in proceeds expected from the IPO will be used for sales and marketing, technology and infrastructure, content acquisition and for other general corporate purposes.
Egreetings has never generated a profit, losing $3.1 million in 1997 and $7.8 million in 1998.
Brendon Kim, a general partner at Altos Ventures, joined the company’s board of directors in March 1996, followed in 1997 by Frank O’Connell, president of Gibson Greetings. Stewart Alsop, a general partner at NEA, joined the company’s board in March 1999, together with Peter Nich, a general partner at Weiss Peck & Greer.
Egreetings Network – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Nine Months Ended September 30
1996 1997 1998 1998 1999
Total revenue 164 505 317 182 1,527
Net loss -1,784 -3,093 -7,821 -5,213 -22,027
Net loss per share -1.14 -1 -2.26 -1.5 -6.12