DEERFIELD, Ill. – Web Street Inc., an Internet brokerage firm, went public November 17, offering 3.75 million shares at $11 apiece. The company’s stock priced at the top of its $9 to $11 filing range.
Fahnestock & Co. Inc., Pacific Crest Securities Inc. and Web Street Securities Inc. underwrote the initial public offering, which left 25.1 million shares outstanding.
There were no selling shareholders. Ambrosio & Sirois Venture Partners L.L.C. was a venture backer.
The company offers brokerage services to individual investors, including Internet stock trading, telephone and broker-assisted trades. Customers have access to market data, news and account information and can buy stocks internationally.
The company intends to use the $37.1 million in proceeds expected from the IPO for marketing and promotional activities, the development of a second data center, working capital and for other general corporate purposes.
Web Street has never generated a profit, losing $3.3 million in 1997 and $11.8 million in 1998.
No venture backers joined the company’s board of directors to date.
Web Street – Selected Financial
(in thousands, except per share data)
September 3, 1996 Year Ended Nine Months Ended
(inception) December 31 September 30
to December 31, 1996 1997 1998 1998* 1999*
Total revenue 329 7,891 4,366 17,163
Net loss -116 -3,267 -11,818 -7,145 -3,992
Net loss per share -0.01 -0.25 -0.71 -0.43 -0.19