Xoom.com, Exchange Top IPO Expectations
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Xoom.com Inc., an Internet-based direct marketing company, and Exchange Applications Inc., a business marketing software developer, completed larger-than-expected initial stock sales Tuesday--indicating both may surge when they begin trading today.
Xoom.com, based in San Francisco, sold 4 million shares at $14 each. That was at the high end of the $12-$14 range set by lead underwriter Bear, Stearns & Co., which had raised the range Monday from $9-$11.
The sale raised $56 million for the company, rather than the $30 million originally anticipated.
Exchange Applications of Boston sold 3 million shares at $11 each. That was $1 more than the top of the $8-$10 range set by lead underwriter BT Alex. Brown Inc. The sale raised $33 million.
In the recent tradition of hot Internet offerings, Xoom.com is less than 3 years old and is reporting growing losses, which reached $6.9 million on a pro forma basis for the nine months ended Sept. 30.
Still, revenue grew to $5.2 million on a pro forma basis in that period from $421,000 a year earlier. Revenue growth is a critical measure investors use to evaluate fledgling Internet firms.
Xoom.com will trade under the symbol XMCM on Nasdaq; Exchange will trade as EXAP, also on Nasdaq.
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