Critical Path Files For $52m Ipo

Computergram International, Feb 3, 1999

Critical Path Inc, a two year old San-Francisco-based start-up which provides email hosting services, filed Monday with the Securities and Exchange Commission for an IPO of $51.8m. Details of the amount of shares to be floated and their expected price were not released. The money raised will be used to expand sales and marketing activities, develop international operations, open additional data centers and for general corporate purposes.

The company currently has data centers in several US cities and it plans to open more data centers in the US, Europe and Asia. Customers of Critical Path are internet access providers, web hosting companies and telcos, such as US West, Sprint, @Home and E*Trade. The company has never made a profit and has $12.5m in accumulated debt. In the company's filing it said it expects to continue to incur net losses for the foreseeable future. The IPO is expected to be completed this quarter or early next quarter and the company will trade on Nasdaq under the symbol, CPTH. The deal will be underwritten by BancBoston Robertson Stephens, Hambrecht & Quist and Dain Rausher Wessels.