AdForce Files for $55 Million IPO

As expected, online ad management solutions provider AdForce Inc. filed for an initial public
offering that could raise as much as $55 million.

“Clearly, the other companies similar to AdForce have done very well,
including DoubleClick and 24/7,” Ken Fleming, a research analyst at
Renaissance Capital Corp., told Bloomberg News. Greenwich, CT-based
Renaissance manages the IPO Plus Aftermarket Fund, which invests in new

AdForce left the number and price of its common shares blank, to be filled in
by later filings, and it estimated the offering’s maximum value at $55 million
only calculate its SEC registration fee.

The company’s top customer is GeoCities, the largest provider of
Web pages, followed by 24/7 Media and Netscape. Revenue for 1998 came to about
$4.3 million last year, according to the IPO filing. Net loss was $15 million.

AOL–AdForce’s top shareholder with 2.5
million shares, a 14 percent stake
before the IPO–also holds a “royalty-free, perpetual license” to AdForce’s
services, the filing said.

Hambrecht & Quist LLC will underwrite AdForce’s stock sale, with Lehman
Brothers Inc., Volpe Brown Whelan & Co., and Charles Schwab & Co. AdForce
plans to trade on the Nasdaq exchange under the symbol ADFC.

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