SAN FRANCISCO – NorthPoint Communications Group Inc., an online network service provider, went public May 5. The company offered 15 million shares of common stock at $24, well above its $16.50 to $19.50 filing range.
Accel Partners, Benchmark Capital, The Carlyle Group, Greylock L.P., Charles Ross Partners Investment Fund and Vulcan Ventures Inc. were venture investors.
Goldman, Sachs & Co., Morgan Stanley Dean Witter and Credit Suisse First Boston underwrote the offering, worth an estimated $360 million. There were no selling shareholders.
NorthPoint, founded in May 1997, provides network services over digital subscriber lines for data transport through existing copper telephone lines. The company currently provides services to 17 metropolitan areas in the United States, and NorthPoint has built partnerships with Microsoft Corp., @Home, Cable & Wireless, Frontier Corp., Concentric Network, ICG Communications and Enron Communications.
Proceeds will be used for general corporate purposes, including the continued build-up of NorthPoint networks. The company has not paid dividends and does not anticipate doing so in the near future.
Andrew Rachleff, a general partner at Benchmark, and J. Peter Wagner, a general partner at Accel, joined the company’s board of directors in August 1997, followed in March 1998 by Robert Dahl, general partner at Riviera Ventures. Dino Vendetti, a partner at Vulcan, and Frank Yeary, managing director of Carlyle, joined the board in February.
Northpoint Communications – Selected Financial
(in thousands, except per share data )
Inception to Year Ended
December 31, 1997 December 31, 1998
Net income (loss) -1,440 -28,847