German e-commerce and internet payment software developer Netlife AG has begun the process of pricing its initial public offering prior to listing on Frankfurt’s Neuer Markt small cap exchange on June 1. Bookbuilding, as it is known, began yesterday, May 26, and runs until May 28, on the offering of up to two million shares, comprising 1.75 million in the basic offering plus another 250,000 in the event of oversubscription.
The price range for the shares is 22 euros-25.50 euros ($23.05-$26.68), which will raise up to 51m euros ($53.37m) for the company. This will value Hamburg-based Netlife at between 170.5m euros ($178.41m) without over-allotments and at the bottom end of the range, and 204m euros ($213.4m) with the over-allotments and at the top of the range.
Netlife CEO Claus Mueller said the company intends to use the funds raised in the IPO to develop international expansion, invest in further technological development and enter new areas of business. The company had revenue of DM4m ($2.14m) in 1998 and is forecasting some DM26m ($13.9m) for this year.
