24/7 Media goes public
The Web advertiser will trade on the Nasdaq under the symbol TFSM and is selling 3.25 million shares at $14 per share.
The company will trade under the symbol TFSM and is selling 3.25 million shares at $14 per share, raising $45.5 million in capital.
This price is the top end of the pricing range of $12 to $14.
24/7 Media's offering has been getting an even more skeptical reception than companies like PointCast and CitySearch who have both pulled out of their offerings recently.
CitySearch opted instead to merge with USA Networks' Ticketmaster Online.
Other companies that have pulled out include Cincinnati Bell's spin-off Convergys, and Del Monte Foods.
The schizophrenic market which has been rising and falling daily has scared many companies from completing their IPOs.
Since it first filed for an IPO, 24/7 Media has also been bruised by bad publicity.
One of 24/7 Media's units, Interactive Imaginations, was saddled with legal problems that ultimately were dismissed, but not before the accompanying legal fees sapped the company's finances.
24/7 Media reported a loss for the quarter ending March 31, 1998, of $4.7 million on revenues of $2.347 million.
Other companies, like GeoCities and Broadcast.com, had stellar IPOs in the past month.
Broadcast.com more than doubled in value the first day it traded last month. GeoCities rose nearly 120 percent in its first day of trading on Tuesday, and continued to climb until it fell more than 15 percent yesterday. Still, GeoCities' shares are trading well above the company's target price of $17.
24/7 Media's managing underwriting group is led by Merrill Lynch, and J.P. Morgan and Allen & Company Incorporated are comanagers of the offering.
24/7 Media sells advertising and promotions for Web sites. In addition, the company licenses its Adfinity advertising management system to independent Web sites to manage and serve high-volume Internet advertising and direct marketing campaigns. The company also markets software to Web commerce companies to allow them the delivery of targeted promotions.