CHENNAI, India – Satyam Infoway Ltd., India’s second-largest Internet service provider, went public October 19, offering 4.2 million shares at $18 apiece. The stock priced at the top of its $16 to $18 filing range.
Merrill Lynch & Co. and Salomon Smith Barney underwrote the offering, which left 21.2 million shares outstanding.
Satyam Computer Services Ltd. and South Asia Regional Fund were venture backers. There were no selling shareholders.
In addition to consumer Internet access, the company also provides corporate network, technology services, on-line portals and content services to 87,000 consumer subscribers and 300 corporate clients.
Satyam expects the $68.9 million in proceeds from the offering to be used for network infrastructure expansion, portal content development, advertising and promotion, and for general corporate purposes.
Satyam Infoway has never been profitable, losing $4.3 million in the year ended March 1999.
C. Srinavasa Raju, a director at Satyam, joined the company’s board of directors in February 1996.
Satyam Infoway – Selected Financial
(in thousands, except per share data)
Year Ended Quarter Ended
March 31, 1999 June 30, 1999
Total revenue 2,387 1,860
Net loss -4,312 -1,191
Net loss per share -0.4 -0.08
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