Community web site operator Xoom.com Inc has filed with the Securities and Exchange Commission for a secondary public offering of 4.0 million shares of common stock. Half the shares will be offered by the company and half by existing stockholders. Also, 600,000 of the shares will be offered for sale outside of the US and Canada. If the shares are sold at an estimated offering price of $67, the company will raise roughly $126.7m, after expenses. The US underwriters have been granted an option to purchase up to 600,000 shares of common stock to cover over- allotments and, if exercised in full, will bring the company’s stake to a total of $164.9m.
Xoom plans to use the cash infusion to develop new e-commerce channels, expand operations internationally and build its brand, in addition to making potential acquisitions or minority investments. The domestic offering is being managed by Bear Stearns & Co Inc, Hambrecht & Quist LLC, BancBoston Robertson Stephens and Wit Capital Corp as e-Manager, while the foreign sale will be handled by the same group and Deutsche Bank AG London. The company will have 16.1 million shares outstanding after the offering. Xoom shares closed Tuesday at $63.75, down $5.875 on the day.
