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Technology Stocks
RedHat Linux distributor -- IPO
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Linux Software Vendor Red Hat Says It Will Go Public
URHAM, N.C. -- Red Hat Inc., which won investments by major information technology companies seeking to build a software challenger to Microsoft, says it will go public with a $96.6 million stock offering.

The company, which found a way to sell software that is available free worldwide in packaged versions backed with technical support, said Friday it has filed a registration statement with the Securities and Exchange Commission for an initial public offering of its common Stock.


Goldman, Sachs & Co. will act as lead underwriter of Red Hat's IPO. Other underwriters include Thomas Weisel Partners and ETrade Securities Inc.

The number of shares to be sold was not disclosed.

Red Hat revealed in the filing that up to this point virtually all of its income has come from selling boxes of Red Hat Linux software. The company is looking at its Web site and income from services, like custom development and training, as sources of future revenue.

Red Hat is close to profitability, the company said it its SEC filing. Revenues have been doubling annually and are listed as $10.7 million for 1999. Its net loss for the fiscal year, which ended Feb. 28, was $130,000. Red Hat spends about 20 percent of its revenue on research and development. Since March 1998, Red Hat's staff has grown from 36 to 130 employees.

Stacy Quandt, an analyst with Giga Information Group in Santa Clara, Calif., said Red Hat will be closely watched after making the first Linux-related IPO.

"This is the first of many," she said. LinuxCare and VA Linux Systems, both based in Northern California, also are IPO candidates.

The single biggest chunk of the company is owned by board member Frank Batten Jr. of Norfolk, Va. Batten, chairman of the media company Landmark Communications, owns 25 percent of Red Hat. Landmark owns The Weather Channel and major regional newspapers, including the News & Record of Greensboro, the Virginian-Pilot of Norfolk and the Roanoke (Va.) Times.

Of all of the technology companies -- like IBM, Netscape, Oracle and SAP -- that have made highly publicized investments in Red Hat, only Intel was identified as a significant owner of the company, with a 5 percent stake.
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49IBM to acquire Red Hat in deal valued at $34 billion The acquisition is by far IJakeStraw-10/29/2018
48How Red Hat Morphed From Linux Pioneer Into Cloud-Computing Player investors.comJakeStraw-6/7/2018
47Whatttttt??? Had it at $5----could this be the same stock??? Whoaaaa!!!JubilationT-3/27/2018
46Red Hat had its price target raised by analysts at Nomura from $152.00 to $182.0JakeStraw-3/27/2018
45Red Hat Inc. was downgraded by analysts at Stifel Nicolaus from a "buy"JakeStraw-12/22/2016
44Plenty of Growth Ahead for Red Hat thestreet.comJakeStraw-9/22/2016
43Red Hat Reports Second Quarter Results for Fiscal Year 2017 “JakeStraw-9/21/2016
42Red Hat Delivers Functionality Updates across Multiple OpenStack Services with GJakeStraw-9/1/2016
41 It means you are on the wrong thread.Jerry Whlan-11/25/1999
40 The stock runs up over 50% in the last week and no activity on this thread?!!? Geary Kwong-11/25/1999
39 No activity since September 21st? Major run to $110/share, Cygnus deal, etc. fellow-11/15/1999
38 You are looking at the wrong market place. Linux will not replace Windows or MGeary Kwong-9/21/1999
37 Clear for a tank - Redhat is years away from offering a desktop product as stabStormweaver-9/13/1999
36 What stock isn't a gamble? Hype or not it was a great gamble Are we cleareGeary Kwong-9/8/1999
35 <i>a gamble on the IPO hype</i> I'll second that motion ! JStormweaver-8/21/1999
34 Not Generally a short...and I am a linux supporter..but I also can't see anOliver Schonrock-8/21/1999
33 <i>As I understand it, they are basically just packaging a free O/S, withStormweaver-8/17/1999
32 Okay, I admit that I wanted to buy RHAT 3 months ago, before they announced theSWF-Steve-8/16/1999
31 Time to short this pig ... I think it's about to collapse <eom>Stormweaver-8/16/1999
30 zero :(Mitch Blevins-8/15/1999
29 Mitch Blevins: How many shares redhat did you get? JimmyJIMMY LIU-8/15/1999
28 It's just a gif. You can save it straight from the page. -MitchMitch Blevins-8/13/1999
27 Mitch, is it an applet or - in fact - an animated GIF, inquiring minds would liPashaBear-8/13/1999
26 Hey Mitch, Where did you get that smoking good java applet of the Linux bird anWhitmore G.-8/13/1999
25 Jimmy, it is too late. You must have already filed your intention and that meaMitch Blevins-8/12/1999
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