Andover.net may be next RedHat?|
Linux Internet site Andover.Net seeks $49.6 mln IPO
WASHINGTON, Sept 16 (Reuters) - Andover.Net Inc., an
Internet destination for Linux/Open Source resources, filed to
raise $49.6 million in an initial public offering, a Securities
and Exchange Commission filing said.
The Acton, Mass.-based company describes itself as the
leading destination on the Internet for products, online tools,
news and other services for Linux and Open Source communities,
the collaborative approach to the development and distribution
of alternative software traditional software products.
Andover.Net plans to sell four million shares as part of
the IPO and will have 15 million shares outstanding once the
sale is completed, the filing said.
The company, which said it has two million visitors to its
web site each month, didn't disclose in its SEC filing the
estimated price range for the shares. Typically, companies file
subsequent documents with more information.
Andover.Net said it plans to use the estimated $49.6
million in proceeds it hopes to raise in the IPO to redeem its
outstanding Series A preferred stock worth an estimated $4.7
million and use the remaining funds for potential acquisitions,
expanding sales, marketing, research and development
With most of its revenue coming from advertising by
computer giants like International Business Machines Corp.
IBM.N and Compaq Computer Corp. CPQ.N, the company posted
$7.3 million in net losses during the nine months ending June
30, the filing showed.
The company is run by president and chief executive officer
Bruce Twickler who founded the company in 1992 and worked as a
consultant to Dragon Systems and Avid Technologies beforehand.
The underwriters, WR Hambrecht & Co., Advest Inc. and
DLJdirect Inc., have been allotted 600,000 shares in the event
of heavy demand.
Andover.net applied to sell its shares on Nasdaq under the
Rtr 19:31 09-16-99
Copyright 1999, Reuters News Service