NEWPORT BEACH, Calif. – Online ticket event provider Tickets.com Inc. went public November 4, offering 6.7 million shares at $12.50 apiece. The company’s stock priced above its $10 to $12 filing range.
Morgan Stanley Dean Witter, Morgan Stanley Dean Witter Online, Credit Suisse First Boston, SG Cowen Securities Corp., E*OFFERING Corp. and Wit Capital Corp. underwrote the initial public offering, which left 57 million shares outstanding.
General Atlantic Partners L.L.C., idealab!, Excite Inc. and R4 Holdings Inc. were venture backers. Selling shareholders collectively sold 444,444 shares of stock.
The company’s online service sells tickets for events held at more than 4,000 venues, from Lincoln Center to the Texas Rangers’ ballpark. The Tickets.com Web site also features an auction service bringing individual ticket sellers and buyers together. The company markets its ticketing software and services to clients in the entertainment industry.
The $70.4 million in proceeds expected from the IPO will be used for repaying debt, sales and marketing expenses, advertising campaigns, brand building, technology development, infrastructure, Web site content and online capabilities. In addition, the company will use the proceeds for general corporate purposes, including working capital.
Tickets.com has never been profitable, losing $6.1 million in 1997 and $34.9 million in 1998.
William Ford, a managing member at General Atlantic, joined the company’s board of directors in May 1998. Howard Morgan, a general partner at idealab!, joined the board in May 1999, followed by Janice Richter, a shareholder at R4 Holdings, in August 1999. George Bell, a director at Excite Inc., joined in October 1999.
Tickets.com – Selected Financial
(in thousands, except per share data)
May 31, 1996 (inception) Year Ended December 31 Nine Months Ended
to December 31, 1996 1997 1998 September 30, 1999*
Total revenue 1,242 11,647 29,540 33,086
Net loss -3,249 -6,099 -34,861 -38,153
Net loss per share -0.65 -1.17 -6.08 -3.46