CORAL SPRINGS, Fla. – PNV Inc., a provider of communications services to truck drivers and the trucking community, went public November 24, offering 3.75 million shares at $17 apiece. The company’s stock priced at the top of its $15 to $17 filing range.
Underwritten by CIBC World Markets, Allen & Co. Inc., Volpe Brown Whelan & Co. and William Blair & Co., the initial public offering left 15.7 million shares outstanding.
Patricof & Co. Ventures Inc., ABRY Broadcast Partners, the State of Michigan Retirement System and Halpern, Denny & Co., were venture backers. There were no selling shareholders.
The company provides telecommunications services, cable television and Internet access to truck drivers. In addition, the company’s clients include trucking fleets, truck stop operators, and trucking industry suppliers and manufacturers. PNV delivers its services through an integrated network deployed in 237 truck stops in 41 states. By October 1999, the company had approximately 27,000 monthly subscribers and 10,000 daily members.
The $58.2 million in proceeds expected from the IPO will be used for capital expenditures, the funding of operating losses, working capital and for other general corporate purposes. In addition, the company intends to use a portion of the proceeds to redeem its outstanding Series A preferred stock.
PNV has never been profitable, losing $13.7 million in 1998 and $39.8 million in 1999.
Robert Chefitz and Thomas Hirschfield, managing directors at Patricof, joined the company’s board of directors in November 1995.
PNV – Selected Financial
(in thousands, except per share data)
Year Ended June 30 Three Months Ended September 30
1997 1998 1999 1998 1999
Total revenue 888 3,504 8,453 1,724 3,381
Net loss -6,045 -13,734 -39,772 -6,482 -14,323
Net loss per share -1.61 -3.83 -9.89 -1.66 -4.23