STAMFORD, Conn. – Priceline.com Inc., an online auction site, held an initial public offering March 29. The stock priced at $16, well above the $12 to $14 price range. The company offered 10 million shares.
Underwriters include Morgan Stanley & Co. Inc., Merrill Lynch & Co., Pierce, Fenner & Smith Inc., BancBoston Robertson Stephen Inc. and Donaldson, Lufkin & Jenrette Securities.
The initial public offering, which left 142 million shares outstanding, was worth $160 million. Proceeds from the IPO will be used for general corporate purposes.
Venture investors include General Atlantic Partners and Vulcan Ventures Inc. There were no selling stockholders.
Priceline.com, formed in July 1997, uses a “demand collection system,” which posts airline tickets, hotel rooms, home financing and new cars for its customers. Items such as airline tickets are about 30% cheaper than the lowest generally available advance purchase fare from an airline. Revenue is made when Priceline.com accepts the customer’s offer and charges the user’s credit card.
Nancy Peretsman, managing director and executive vice president of Allen & Co. Inc., joined the board in June 1995, followed by William Ford, managing member of General Atlantic Partners, in July 1998.
Priceline – Selected Financial
(in thousands, except per share data)
July 18, 1997 (Inception)
to December 31, 1997 Year Ended December 31, 1998
Revenue 0 35,236
Net loss -2,513 -112,242
Loss per share -0.05 -1.41