As venerable investment bank Goldman Sachs & Co made its long- anticipated initial public offering on the New York Stock Exchange Tuesday, two internet IPOs were well received on the Nasdaq market. Although largely overshadowed by the debut of Goldman stock – of which 69 million shares were sold at $53, making the $3.66bn sale the second-largest in US history – shares in MapQuest.com Inc and FlyCast Communications Corp each showed strong gains in their opening sessions.
Online mapping and travel information provider MapQuest sold 4.6 million shares at $15 – higher than the $12 to $14 expected – raising $69m before expenses. Shares in the Mountville, Pennsylvania-based company traded as high as $28 before closing the day at $22.375, up $7.375, or 49.2% on the offering price. All of the shares were sold by the company through an underwriting group led by BancBoston Robertson Stephens Inc. The company says it plans to use the proceeds of the offering for expansion of its sales and marketing capabilities, for product development, to redeem outstanding shares of preferred stock and for working capital.
Meanwhile FlyCast Communications Corp, the San Francisco-based web advertising placement firm, raised $75m before expenses, selling 3 million shares at $25 each – up from an expected range of $21 to $23. The issue rose as much as 48% on the day, before closing up $4.75, or 19%, at $29.75. The offering was led by BT Alex Brown and FlyCast intends to use the proceeds for working capital and general corporate purposes.
Web traffic measurement firm Media Metrix Inc is also expected to price its IPO this week. The New York-based company filed in February for an offering of up to $48.3m worth of shares and is now expected to sell 3 million shares at $12 to $14 through lead underwriter Donaldson Lufkin & Jenrette.
