MORRISVILLE, N.C. – SciQuest.com Inc., a lab equipment e-tailer, went public November 19, offering 7.5 million shares at $16 apiece. The company’s stock priced well above its $12 to $14 filing range.
Donaldson, Lufkin & Jenrette Inc., Deutsche Banc Alex. Brown AG, Hambrecht & Quist Group, DLJdirect Inc. and E*OFFERING Corp. underwrote the initial public offering, which left 24.6 million shares outstanding.
Venture backers included Trinity Ventures, Bessemer Venture Partners, ABS Capital Partners, Noro-Mosley Partners and the Wakefield Group. There were no selling shareholders.
The company sells lab equipment over the Internet for academic, biotechnology, chemical, clinical, industrial and pharmaceutical scientists. SciQuest.com offers clients access to more than 550,000 products from more than 8,000 suppliers.
The company intends to use the expected $110.6 million in proceeds from the IPO for general corporate purposes, including working capital, the expansion of its sales and marketing team, technology enhancement and online content generation. The company also might use a portion of the proceeds for the possible acquisition of, or investment in, complementary businesses and technologies.
SciQuest.com has never generated a profit, losing $690,000 in 1997 and $4.2 million in 1998.
Alan Taetle, a general partner at Noro-Moseley, joined the company’s board of directors in August 1998. Gautam Prakash, a partner at Bessemer, joined the company’s board of directors in October 1998, followed by Noel Fenton, a managing general partner at Trinity, who joined in November 1998. Timothy Weglicki, a founding partner at ABS, joined the company’s board of directors in May 1999.
SciQuest.com – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Nine Months Ended September 30
1996 1997 1998 1998* 1999*
Total revenue $196 478 308 1,244
Net loss -545 -690 -4,222 -2,065 -15,141
Net loss per share -0.16 -0.2 -1.33 -0.64 -17.6