NEW YORK – StarMedia Networks Inc., a leading Internet provider in Latin America, went public May 25. The company offered 7 million shares at $15 apiece, at the top of its $13 to $15 filing range.
Chase Capital Partners, Flatiron Fund, and Warburg, Pincus Equity Partners were venture backers. There are no selling shareholders.
Underwriters included Goldman, Sachs & Co., BancBoston Robertson Stephens, J.P. Morgan & Co. and Salomon Smith Barney. The offering left 53.1 million shares outstanding.
StarMedia Networks, incorporated in March 1996, provides online service to customers in Latin America. The 16 interest-specific channels provide search engines, local and regional news and online shopping, in both Spanish and Portuguese. As of December 1998, the company had acquired $54.5 million of debt.
Proceeds from the offering, worth an estimated $105 million, will be used for general corporate purposes.
Christopher Linen, principal of Christopher Linen & Co., joined the company’s board of directors in November 1996, followed by Susan Segal, general partner of Chase Venture Capital, and Fredrick Wilson, managing partner of Flatiron, in July 1997. Douglas Karp, managing director of Warburg Pincus, became a director in September 1998.
StarMedia Networks – Selected Financial
(in thousands, except per share data )
March 5, 1996 (Inception) Year Ended December 31, Three Months Ended March 31,
to December 31, 1996 1997 1998 1998 1999
Revenue 460 5,329 256 1,541
Net loss -128 -3,528 -45,886 -2,857 -15,551
Net loss per share -0.01 -0.37 -4.94 -0.31 -1.74