PALO ALTO, Calif. – TIBCO Software Inc., a developer of software that allows businesses to integrate internal operations with customer and partners in real-time, held an initial public offering July 13. The company offered 7.3 million shares of common stock at $15 apiece, the high end of its $14 to $15 proposed price range.
Underwriters included Goldman Sachs & Co., Bear, Stearns & Co. Inc. and Deutsche Banc Alex. Brown. The offering left 58.75 million shares outstanding. Concurrent with the issue, TIBCO placed 266,667 common shares with Yahoo Inc. and 500,000 common shares with Sun Microsystems Inc.
Reuters Group PLC, Cisco Systems Inc. and Mayfield Fund were venture backers, and there were no selling shareholders.
TIBCO, formerly a Reuters’ subsidiary, was incorporated in Delaware in November 1996. The company uses The Information Bus (TIB) technology to develop software products, allowing real-time integration and management of multiple applications, Web sites, databases and other content sources within a shared framework. TIBCO’s products also allow a company to expand its information network across the Internet. Users of TIBCO’s products include Goldman Sachs & Co., Ericcson and Chevron Corp.
The estimated $109.5 million in proceeds from the offering will be used for general corporate purposes.
Yogen Dalal, a partner of Mayfield Fund, has been a member of the company’s board since December 1997. Edward Kozel and Donald Listwin, both of Cisco Systems, joined TIBCO’s board in May 1997 and October 1998, respectively. Douglas Atkin of Instinet Corp. – another Reuters’ Group subsidiary – has served as a member of TIBCO’s board since July.
TIBCO Software – Selected Financial
(in thousands, except per share data)
Year Ended Eleven Months Ended Year Ended Six Months Ended
December 31, November 30, November 30, May 31,
1996 1997 1998 1998* 1999*
Total revenue 30,315 35,274 52,757 24,854 39,072
Net loss -4,640 -4,663 -12,951 -3,941 -8,959
Net loss per share -0.24 -0.65 -0.20 -0.43