RoweCom Inc. –

CAMBRIDGE, Mass. – RoweCom Inc., a software developer that facilitates the online purchase and subscription of various print publications, held an initial public offering March 8, offering 3.1 million shares at $16 each. The stock priced at the high end of the company’s $14 to $16 price range.

The IPO, underwritten by J.P. Morgan & Co., CIBC Oppenheimer and Volpe Brown Whelan & Co., left 9.63 million shares outstanding. Proceeds from the offering, estimated at $49 million, will be used for general corporate purposes.

Venture investors include Working Ventures Canadian Fund Inc., Highland Capital Partners III, Crystal Internet Venture Fund, PV Securities and Zero Stage Capital VI. There were no selling shareholders.

RoweCom develops computer systems that allow businesses to purchase newspapers, magazines, journals and books online. The company’s flagship product, kStore, enables customers to locate, order and pay for research materials quickly and conveniently.

The company, founded in 1994, earned $3.1 million in 1996, $12.8 million in 1997 and $19.1 million in 1998. The company is not profitable due to debt incurred in December 1998.

Stanley Fung, managing director of Zero Stage Capital , has served as a director of RoweCom since December 1998.


Rowecom – Selected Financial

(in thousands, except per share data)

Year Ended December 31,

1995 1996 1997 1998

Revenue 324 3,116 12,890 19,053

Net loss 585 1,450 3,254 7,629

Basic and diluted pro forma net loss share

– – – -1.87