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HolidayBuyer's Guide
Tech Industry

Organic Online sets IPO price

The Net services company plans to sell 5.5 million shares at an estimated price range of $12 to $14 a share in its initial public offering, according to a recent filing with the Securities and Exchange Commission.

Organic Online said it plans to sell 5.5 million shares at an estimated price range of $12 to $14 a share in its initial public offering, according to a recent filing with the Securities and Exchange Commission.

Underwriters led by Goldman Sachs and Donaldson, Lufkin & Jenrette, and co-managed by Thomas Weisel Partners have the option to buy up to an additional 825,000 shares from Organic if there is a strong demand for the stock, according to the company's SEC registration filing on Tuesday.

The San Francisco-based Internet services firm, which announced its plans to go public in November, will soon join a crowded space that includes Agency.com, iXL, Scient, Luminant, Razorfish, Proxicom and others who have all recently enjoyed successful stock runs. According to market research firm International Data Corp. (IDC), the market for Internet services is projected to reach $78.6 billion by 2003 as companies shift business to the Web.

Organic provides strategic consulting, builds Web sites and helps companies with marketing and brand building. The company said it plans to use funds raised from the IPO to expand corporate infrastructure, reduce its debt and meet general corporate needs.

After the offering, Organic Holdings will own 64.9 percent of Organic's outstanding common stock and Omnicom Group will own 24.7 percent of the company.

Organic, founded in 1993 and led by CEO Jonathan Nelson, has already opened offices in Detroit, Chicago, London, New York, Singapore and San Paolo. To date, the company said it has landed over 250 clients including Barnes & Noble, Blockbuster, Boo.com, CDNow, Chase Manhattan Bank, Compaq, DaimlerChrysler, Tommy Hilfiger and Washington Mutual.

Organic plans to trade on the Nasdaq under the ticker symbol "OGNC."