Liquid Audio Soars on Nasdaq Debut; PlanetRX Files for IPO

Computergram International, July 12, 1999

Shares in Liquid Audio Inc soared on their Nasdaq debut Friday, more than tripling in value after the internet audio software provider's initial public offering. The shares - which were offered at $15 each, up from an expected range of $10 to $12 - opened trading at $41 and jumped as high as $48 before closing at $36.5625, a 144% gain on the day. In addition to easily being the most advanced stock, volume for the session was 9.3 million shares, good enough for seventh on the most active list.

The Redwood City, California-based company sold 4.2 million shares, raising $62.1m after expenses. The offering, which represented a 23% stake, was managed by Lehman Brothers, BancBoston Robertson Stephens and US Bancorp Piper Jaffray. The shares are trading under the ticker symbol LQID.

Liquid Audio makes software that allows for the digital delivery of music over the internet. The company lost $8.5m last year on revenue of $2.8m and showed a $4.1m loss on revenue of $531,000 in the March quarter of this year. Its business plan calls for it to incur losses through at least 2002. Nevertheless, the company now has a market capitalization of roughly $660m, based on Friday's closing price.

Meanwhile, another internet company is looking to get in on the action, as online pharmacy PlanetRX.com Inc filed with the Securities and Exchange Commission for an initial public offering of its own. The South San Francisco-based rival to Drugstore.com, which filed plans for its IPO two months ago, is hoping to raise up to $69m from the sale, but has yet to set a number of shares or a price range. The company lost $4.1m last year on zero revenue, and $20.1m on $817,000 in revenue in the first six months of this year, according to the filing. Goldman Sachs will serve as lead manager of the offering. The shares will trade on the Nasdaq market under the symbol PLRX.