NovaMed Eyecare Inc. –

CHICAGO – NovaMed Eyecare Inc., an eye care services company that focuses on laser vision correction, went public August 18, offering 4 million shares at $8 apiece. The company’s stock priced below its $9 to $10 filing range.

Underwritten by Donaldson, Lufkin & Jenrette, Hambrecht & Quist, William Blair & Co. and DLJdirect, the initial public offering left 23.3 million shares outstanding.

The company’s sole venture backer, Sierra Ventures V, did not unload any of the one million shares sold during the offering.

NovaMed owns and operates 10 eye surgery and laser centers in the U.S. where affiliated eye care professionals perform laser vision correction and other eye-related surgical procedures. The company also oversees an eye-only research organization and an optical services division that produces and sells eye care products and accessories.

The expected $20.5 million generated in the IPO will be used to repay the company’s existing bank debt and redeem approximately $1.35 million of its subordinated notes.

The company was profitable in 1997, when it earned $105,000 and in 1998, when it generated $1.7 million.

James Tananbaum, a former partner in Sierra Ventures, joined the company’s board of directors in January 1997. Peter Wendell, the founder and a general partner of Sierra Ventures, followed in March.


NovaMed Eyecare – Selected Financial

(in thousands, except per share data)

Years Ended December 31 Six Months Ended June 30

1995 1996 1997 1998 1998 1999

Total revenue 568 15,850 42,408 63,729 27,285 44,862

Net loss -807 -912 105 1,706 585 1,072

Net loss per share 0.01 0.07 0.03 -0.17