SANTA CLARA, Calif. – Ramp Networks Inc., a provider of shared Internet access solutions for small businesses, went public June 22. The company offered 4 million shares at $11 apiece, within its $10 to $12 filing range.
BancBoston Robertson Stephens, Dain Rauscher Wessels and Hambrecht & Quist underwrote the initial public offering, which left 20.01 million shares outstanding.
Several executives and directors sold 147,000 shares in the offering, which did not include venture backers Venrock Associates I and II, InterWest Partners V, London Pacific Life & Annuity Co., Vertex Investment II Ltd. and Draper International Holdings.
Ramp’s WebRamp products allow multiple users in small offices to share the same Internet connection simultaneously while optimizing each other’s access speed. The products support existing analog phone lines, cable broadband lines and other emerging technologies.
The $38.6 million in proceeds will be used to improve sales and marketing efforts, increase research and development and for general corporate purposes.
The company has not been profitable in recent years, losing $13.4 million in 1998 and $11.5 million in 1997.
Anthony Sun, a general partner of Venrock Associates, has served as chairman of the company’s board of directors since September 1995. Philip Gianos, a general partner at InterWest Partners, joined the board in March 1996.
Ramp Networks – Selected Financial
(in thousands, except per share data)
Year Ended December 31, Three Months Ended March 31,
1996 1997 1998 1998 1999
Revenue 517 5,587 9,858 2,644 3,883
Net loss -6,322 -11,534 -13,418 -3,771 -2,989
Net loss per share -0.86 -0.19