EMERYVILLE, Calif. – HealthCentral.com, a health care portal, went public December 7, offering 7.5 million shares at $11 apiece. The company’s stock priced at the top of its $9 to $11 filing range.
Underwritten by Lehman Brother Holdings Inc., Hambrecht & Quist Group, Pacific Growth Equities Inc., Wit Capital Corp. and Fidelity Capital Markets, the initial public offering left 19.7 million shares outstanding.
Delphi Ventures, InterWest Partners and MedVenture Associates were venture backers.
The company provides comprehensive, up-to-date, personalized health care information through its three Web sites: HealthCentral.com, HealthCentralRx.com and RxList.com.
The $75.2 million in proceeds expected from the IPO will be used for working capital, for sales and marketing and for cash payments to AltaVista Co. and America Online Inc. for its partnerships agreements. The company will also use a portion of the proceeds to fund its Web site and for content development, infrastructure improvements and operating losses.
HealthCentral.com has never been profitable, losing $1,148 in 1997 and $446,235 in 1998.
Annette Campbell-White, a general partner at MedVenture, joined the company’s board of directors in September 1999.
HealthCentral.com – Selected Financial(in thousands, except per share data)
(in thousands, except per share data)
Year Ended December 31 Nine Months Ended September 30
1997 1998 1998* 1999
Total revenue 15 0.48 488
Net loss -1148 -446 -82 -9
Net loss per share -0.1 -3.97