RealTime IT News

Corio Files for IPO

Pioneering ASP Corio took the first formal step towards a Nasdaq listing when it filed registration papers with the US Securities and Exchange Commission (SEC) for a proposed IPO.

It is believed to be aiming to raise at least $50m in the offering, which is to be underwritten by Goldman Sachs, Merrill Lynch and Robertson Stephens.

According to pro forma accounts filed with the application, Corio's revenues in the year ended Dec 31st 1999 were $5.8m, made up of $746,000 from application management services and just over $5m from professional services and other sources. Its net loss for the period was $45.0m.

The proceeds of the IPO will be used to bolster working capital and potentially make acquisitions, according to the document.

The long-awaited IPO will be the most significant ASP market debut since arch-rival USinternetworking became the first ASP to join the Nasdaq national market a year ago. Depending on market conditions, the offering is likely to take place in approximately two months' time.

The filing comes at the end of a mixed week for ASP stock market offerings.

Earlier this month, Corio signed an agreement with Korean IT services giant Samsung SDS to set up a joint venture ASP, its first investment outside the USA. The two partners will stump up initial funding of $4.5m. Corio's founder, Korean American Jonathan Lee, who was on a visit to Korea at the time of the agreement, will serve as chairman of the venture.

To be called Corio SDS, the venture will draw on Corio's ASP offerings and Samsung's network infrastructure and ERP expertise in the small and medium-size business market.