SAN FRANCISCO – Mediaplex Inc., an online advertising services company, went public November 19, offering 6 million shares at $12 apiece. The company’s stock priced at the top of its $10 to $12 filing range.
Lehman Brother Holdings Inc., SG Cowen Securities Corp., U.S. Bancorp Piper Jaffray Inc. and Fidelity Capital Markets underwrote the initial public offering, which left 30.7 million shares outstanding.
R & E Holdings L.L.C., PointBreak Ventures, Zeron Capital Ltd., Pequot Capital Management Inc. and The Goldman Sachs Group were venture backers. There were no selling shareholders.
The company’s MOJO technology can target ads to specific users based on behavior and demographic profiles. It can also access a client’s product database to deliver messages tailored to product availability or special pricing.
The $65.9 million in proceeds expected from the IPO will be used for general corporate purposes, including working capital and the possible acquisition of complementary products, technologies or businesses.
Mediaplex has never been profitable, losing $1.1 million in 1997 and $2 million in 1998.
Jon Edwards, a general partner at R & E, has been the company’s president since April 1998. Gregory Raifman, a general partner at R & E, has acted as the company’s chairman since September 1998. Walter Haefeker, a managing member at PointBreak, has been the company’s chief operating officer since September 1998. Lawrence Lenihan, a fund manager at Pequot, joined the company’s board of directors in August 1999.
Mediaplex – Selected Financial
(in thousands, except per share data)
September 10, 1996 (inception) Year Ended Nine Months Ended
to December 31 September 30
December 31, 1996 1997 1998 1998 1999
Total revenue 426 3,588 2,951 13,941
Net loss -255 -1,117 -2,019 -1,117 -12,640
Net loss per share -0.07 -0.13 -0.25 -0.13 -2.05