SANTA CLARA, Calif. – NVIDIA Inc., a developer of three-dimensional graphics processors and related software, held an initial public offering January 21, offering 3.5 million shares at $12 each. The stock priced above the company’s $7 to $9 filing range.
The IPO, which left 28.6 million shares outstanding, was underwritten by Morgan Stanley Dean Witter, Hambrecht & Quist and Prudential Securities Inc.
Sequoia Capital VI and Sutter Hill Ventures are venture investors. There were no selling shareholders.
NVIDIA designs, develops and markets three-dimensional graphics processors and related software that provide high performance interactive 3D graphics to the mainstream PC market. The company’s products provide superior processing power at competitive prices by taking advantage of mainstream industry standards such as Microsoft Corp.’s Direct3D application programming interface.
Net proceeds from the offering, estimated at $37.3 million, will be used for general corporate purposes.
NVIDIA has never been profitable, losing $3.5 million in the nine months ended October 25, 1998, and $3.6 million in 1997.
Tenche Coxe, a managing director of Sutter Hill Ventures, and Mark Stevens, a general partner of Sequoia Capital, were named to the company’s board of directors in June 1993.
NVIDIA – Selected Financial
(in thousands, except per share data)
April 5, 1993
(inception) Year Ended December 31, Nine Months Ended
to Dec. 31, 1993 1994 1995 1996 1997 Sept. 28,1997 Oct. 25, 1998
– – 1,182 3,912 29,071 5,537 92,700
Net loss -484 -1,361 6,377-3,077 -3,589 -5,013 -3,532
Net loss per share
-0.07 -0.19 -0.56 -0.27 -0.28 -0.41 -0.25