SOUTH SAN FRANCISCO – PlanetRx.com Inc., an on-line provider of health care products, held an initial public offering October 7, offering 6 million shares at $16 apiece, above its $12 to $14 filing range.
Goldman Sachs & Co., Hambrecht & Quist, BancBoston Robertson Stephens and William Blair & Co. underwrote the initial public offering, which left 50.8 million shares outstanding.
There were no selling shareholders. Venture backers included Benchmark Capital, Sequoia Capital, Markas Holding B.V., News America Inc. and Express Scripts Inc.
The company offers one of the largest selections of fully searchable health and personal care products over the Internet. PlanetRx.com operates its own distribution center and a 24-hour-a-day staffed pharmacy where customers can fill prescriptions that are directly reimbursable by their insurance companies.
PlanetRx.com plans to use the expected $88.1 million in proceeds generated from the offering for working capital and for general corporate purposes. Proceeds might also be used to acquire complementary technologies or businesses.
PlanetRx.com has never been profitable, losing $137,000 in 1997 and $4.1 million in 1998.
David Beirne, a managing member at Benchmark, joined the board of directors in September 1998, along with Michael Moritz, a general partner at Sequoia.
PlanetRx.com – Selected Financial
(in thousands, except per share data)
March 31, 1995 (inception) Year Ended December 31, Six Months Ended June 30,
to December 31, 1995 1996 1997 1998 1998* 1999*
Net revenue 817
Net loss -22 -7 -137 -4,087 -111 -20,101
Net loss per share -9.12 -8.35