BENSALEM, Pa. – WorldGate Communications Inc., a provider of television-based Internet services, went public April 15, offering 5 million shares at $21 apiece. The stock priced above the company’s $18 to $20 filing range.
The initial public offering, underwritten by Gerard Klauer Mattison & Co. Inc., Jefferies & Co. Inc. and Janney Montgomery Scott Inc., will leave 20.6 million shares outstanding.
Citicorp, Evercore Partners, Granite Associates, L.P. and Advent International Corp. were venture backers. There were no selling shareholders.
WorldGate, incorporated in 1996, delivers Internet services through existing cable television systems. The company uses Channel HyperLinking technology that allows consumers to connect with advertisers’ interactive Web sites while viewing cable television. WorldGate has never paid cash dividends.
The $105 million raised from the offering will be used for general corporate purposes.
Marcia Hooper, partner with Advent’s Information Technology Group, and Alan Gerry, founder of Granite Associates L.P., joined the company’s board of directors in April 1997. Thomas Baxter, operating partner of Evercore, became a director in June 1998.
WorldGate Communications – – Selected Financial
(in thousands, except per share data )
Year Ended December 31,
1996 1997 1998
Revenue 141 1,022
Net loss -2,923 -14,041 -27,122
Net loss per share* -2.25