NEW YORK – Miningco.com Inc., a provider of Internet information services, went public March 24, selling 3 million shares. The stock priced at $25 per share, at the top of the company’s $23 to $25 filing range.
The initial public offering was underwritten by Bear, Stearns & Co. Inc., Volpe Brown Whelan & Co., and Wit Capital Corp., leaving 11 million shares outstanding.
Venture investors include C-Max Capital, Crystal Internet Venture Fund, Doll Technology Investment Fund and Zero Stage Capital. There were no selling shareholders.
Incorporated in June 1996, miningco.com is an Internet network composed of more than 60 Web sites managed by human guides, which are located in more than 40 states and 18 countries. According to an independent report provided by Media Metrix Inc., more than 4.6 million users visited the miningco.com site in January.
The company has not been profitable, and as of December 1998 miningco.com has accumulated a deficit of $27.9 million. Proceeds from the offering will be used to increase sales and marketing, for internal advertising sales personnel and for general corporate business.
Dixon Doll, managing general partner of Doll Capital management, has been a director of miningco.com since August 1997. Marc Watson, co-founder of C-Max Capital, and Kristopher Wood, vice president and Chief Financial Officer of XL Capital, have been directors since April 1998 and November 1998, respectively.
miningco.com – Selected Financial
(in thousands, except per share data)
Year Ended December 31,
Period from June 27, 1996
(inception) through December 31, 1996 1997 1998
Revenue 391 391 3,722
Net loss attibutable to common stockholders – 2,438 -8,640 -16,808
Basic and diluted net loss per common share -1.2 -4.94 -9.71