CMP sets IPO sights for $95 million
The high-tech media company sets its initial public offering pricing range at $17 to $19 a share.
CMP proposes to float out 5 million shares. Proceeds from 3.75 million of those shares will go to the company, with the remainder to selling shareholders.
The IPO will give CMP up to $71.25 million, which it plans to put toward paying off an outstanding revolving credit line balance. Shareholders will receive up to $23.75 million.
Under the pricing range, CMP will have a market value of up to $429.85 million.
CMP, a computer publisher of Windows, Computer Reseller News, and HomePC magazines, among other titles, also released its anticipated June quarter results.
CMP expects revenues of $118 million to $125 million for the quarter ending June 30, compared with $107 million a year ago. The company posted revenues of $101.9 million in the previous quarter.
The company attributed its revenue growth to the sizable growth of Computer Reseller News and InformationWeek having sizable growth.
Income from operations is expected to be $11 million to $12.5 million for the quarter, compared with $9.2 million a year ago. The company posted an operating loss of $944,000 in the previous quarter.
CMP is scheduled to float out its public offering in early August, according to Securities Data.
The publisher is one of the latest technology-related companies to consider an IPO. Also in the pipeline is @Home, which is scheduled to go public next week.
But IPOs for media companies have been somewhat weak.
Wired Ventures, for example, dropped its IPO plans last October due to a lack of market interest. However, the publisher of computer-related content was able to raise $21.5 million in a round of venture capital financing.