IPOs IN REGISTRATION – OnDisplay Inc. –

SAN RAMON, Calif. – Software provider OnDisplay Inc. went public December 17, offering 3.5 million shares at $28 apiece. The company’s stock priced well above its $22 to $24 filing range.

Underwritten by Robertson Stephens, Deutsche Banc Alex. Brown and SG Cowen, the initial public offering left 19.2 million shares of stock outstanding.

There were no selling shareholders. Venture backers included Matrix Partners, Norwest Venture Capital, Atlas Venture and Amerindo Investment Advisors.

Through its suite of software products, OnDisplay enables clients to manage e-business portals and e-marketplaces. With OnDisplay products, companies can manage information and transactional data exchanges among their suppliers, distributors, customers and other trading partners.

The company plans to use the expected $90.1 million generated from the initial public offering to create a public market for its common stock, facilitate future access to public equity markets and to provide visibility and credibility in a marketplace where competitors are or are likely to become publicly-held companies. OnDisplay also will use the proceeds for general corporate purposes, including possible acquisitions of complementary products or technologies.

OnDisplay has never been profitable, losing $5.5 million in 1997 and $8.3 million in 1998.

Timothy Barrows, a general partner at Matrix, joined the company’s board of directors in September 1996, along with Christopher Spray, a general partner at Atlas. Promod Haque, a managing general partner at Norwest, followed in August 1997.


OnDisplay – Selected Financial

(in thousands, except per share data)

Year Ended Nine Months Ended

August 14, 1996 (inception) December 31 September 30

to December 31, 1996 1997 1998 1998* 1999

Total revenue 256 3,343 2,220 6,568

Net loss -572 -5,534 -8,348 -5,841 -9,267

Net loss per share -0.17 -1.62 -2.34 -1.66 -2.34

*Unaudited