NetCreations Raises $42.9 Million in IPO
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Opt-in e-mail marketing company NetCreations Inc. (NTCR) raised $42.9 million in an initial public offering of 3.3 million shares.
The shares, priced at $13, opened at $18 and closed at $20 on a trading volume of 5.5 million. NetCreations ended the day with a market capitalization of about $300 million.
Friedman, Billings, Ramsey was the lead underwriter, along with C.E. Unterberg, Towbin, fbr.com, and Fidelity Capital Markets.
The company last year had revenues of $3.4 million with net income of $606,000. For the first half of 1999, NetCreations said it has delivered approximately 28 million e-mail messages, generating net revenues of $5.3 million and net income of $1.3 million.
Co-founder and CTO Ryan Druckenmiller owns 38.2 percent of the company, worth $114 million at the current valuation.
NetCreations specializes in opt-in e-mail address list management, brokerage and delivery of advertising. Clients, range from large companies such as Dell Computer, Compaq, J. Crew and Ziff-Davis, to small retailers selling items over the Internet.