Medscape Inc, which operates a healthcare information web site, said Wednesday that it has decided to postpone its planned initial public offering amid the current downturn in the appetite for internet stocks. The New York-based company had been set to offer 5.4 million shares of common stock at $11 to $13 each, raising up to $70.2m.
The company cited current market conditions as the motivating factor behind the decision. Major internet stock indexes have seen double-digit declines over the past few months. Earlier this week, internet recruitment service HotJobs.com Inc watched its IPO fall flat as the company sold fewer shares than initially planned at a reduced rate and still watched the stock close below the offering price.
Medscape says it will continue to evaluate market conditions with an eye toward proceeding with the offering at a future date. The company faces competition on various fronts from the likes of WebMD Inc, which is in the process of a merger with Healtheon Corp, and DrKoop.com Inc. It posted a loss of $3.8m in 1998 on revenue of $5.7m
Last month, the company sold a 35% stake to CBS Corp in return for $150m worth of promotion over a seven-year period across the media giant’s properties in broadcast and cable television, as well as those of its radio and outdoor advertising subsidiary, Infinity Broadcasting Corp.
