PALO ALTO, Calif. – Kana Communications Inc., a provider of communication software for e-businesses, went public September 22, offering 3.3 million shares at $15 apiece. The company’s stock priced at the high end of its $14 to $15 filing range.
Underwritten by Goldman, Sachs & Co., Hambrecht & Quist and Wit Capital Corp., the initial public offering left 27.9 million shares of stock outstanding.
Venture backers included Draper Fisher Jurvetson, Benchmark Capital and Amerindo Investment Advisors. There were no selling shareholders.
Kana enables e-businesses to manage high volumes of inbound and outbound e-mail and Web site-based communications while facilitating the delivery of specific and personalized information to each customer.
The company plans to use the expected $44.6 million generated from the IPO for marketing and distribution, product development, capital expenditures, working capital and for general corporate purposes. Kana also plans to use a portion of the proceeds to acquire or invest in complementary businesses or products and to obtain the right to use complementary technologies.
The company has never been profitable, losing $1.4 million in 1997 and $7.4 million in 1998.
Steven Jurvetson, a managing director at Draper Fisher Jurvetson, joined the company’s board of directors in April 1997. David Beirne, a managing member at Benchmark Capital, followed in September 1997.
Kana Communications – Selected Financial
(in thousands, except per share data)
Years Ended December 31 Six Months Ended June 30
1997 1998 1998 1999
Total revenue 2,049 656 3,578
Net loss -1,383 -7,378 -2,425 -9,854
Net loss per share -0.92 -2.58 -1.58 -1.89