MP3.com Increases Size of IPO After Winning French Funding

Computergram International, July 13, 1999

Internet music distributor MP3.com Inc has raised the size and price of its initial public offering after France's Groupe Arnault promised to buy $150m worth of advertising, promoting and marketing services over the next three years. San Diego, California-based MP3.com now plans to offer 12.3 million shares, up from 9 million, at $16-$18 per share, up from $9-$11. The total value of the revised offering is $221m.

Of the 12.3 million shares, 3.3 million have been offered to Arkaro SA, a subsidiary of Groupe Arnault. A further 1.85 million have been set aside for sale to artists and customers of MP3.com at the company's own request. The IPO will be made through Credit Suisse First Boston, Hambrecht & Quist, BancBoston Robertson Stephens and Charles Schwab & Co.