SANTA MONICA, Calif. – Stamps.com Inc., an online postage retailer and distributor, went public June 24, offering 5 million shares at $11 apiece. The stock priced at the high end of the company’s $9 to $11 filing range.
BancBoston Robertson Stephens, Thomas Weisel Partners, Volpe Brown Whelan & Co. and Wit Capital underwrote the initial public offering, which left 34.77 million shares outstanding.
There were no selling shareholders. Brentwood Associates VIII, Enterprise Partners IV, SBIC Partners, Vulcan Ventures Inc. and Chase Venture Capital Partners were venture backers.
Stamps.com provides a convenient and affordable way to purchase and print postage over the Internet. All that is needed to print the company’s Internet postage is a computer, printer, Internet access and free downloadable software.
The $50.5 million in proceeds will be used for expansion of marketing and distribution partnerships and to enhance server and network infrastructure.
The company has never been profitable, losing $3.7 million in the first three months of 1999 and $4.2 million in 1998.
Jeffrey Brown, a general partner of Forrest Binkley & Brown’s SBIC Parters, and Thomas Clancy, a venture partner at Enterprise Partners, joined the company’s board of directors in February 1998, followed by Bradford Jones, a general partner at Brentwood, in October 1998.
January 9, 1998 (inception) January 9, 1998 (inception) Three Months
to December 31, 1998 to March 31, 1998 Ended March 31, 1999
Net loss -4,195 -363 -3,688
Net loss per share -0.85 -0.09 -0.53