Linux-based web server appliance vendor Cobalt Networks Inc filed plans with the US Securities and Exchanges Commission on Wednesday to raise an estimated $86m from an initial public offering. Mountain View, California-based Cobalt sold about 11,000 servers, ranging in price from $999 to $1,799 to July 2, according to the filing. It plans to use the IPO proceeds to cut operating losses, boost working capital and underpin increased capital investment, the filing added.
Cobalt has 101 employees and posted net losses of $8.2 m on $7.7m revenue in the six months to July 2. In its filing Cobalt cited projections from industry research firm Dataquest which tips the server market to grow from $2.2bn this year to $15.8bn by 2003. The firm is expected to issue further SEC filings that will disclose the number of shares up for grabs.
