AboveNet Communications Goes Public
Ticker: NASDAQ "ABOV"
San Jose, CA - On December 10, 1998, AboveNet Communications, Inc. ("AboveNet or the "Company") became a publicly traded concern on the NASDAQ (National Association of Securities Dealers Automated Quotation) National Market. The underwriters for the initial public offering ("IPO") were CIBC Oppenheimer and Volpe Brown Whelan & Company. The stock priced at $13.00 per share after being increased by the underwriters from $11.00. The stock has traded up nicely since its pricing and is currently trading in the low- to mid- twenties.
AboveNet is a leading provider of high performance, managed co-location and Internet connectivity solutions for electronic commerce and other mission-critical Internet operations. AboveNet has developed a network architecture based upon two strategically located, fault-tolerant facilities that combine content co-location services with direct ISP access to create Internet Service Exchanges ("ISX's"). Through its network architecture and peering relationships, the Company can reduce the number of network connections or "hops" for data travelling across the Internet. The Company's customers include CNET, Dacom America, Electronic Arts, iXL, Netscape Communications, Real Networks, and Imagine Radio.
Kline Hawkes made its investment in AboveNet in July 1998 as the lead investor in a $10 million Series D round. By September, the Company had raised an additional $4 million at a substantially higher valuation. Simultaneous with the Series E round, the Company filed an S-1 Registration Statement for an initial public offering. Shortly thereafter, the public equity market stalled and few deals were coming to market. Kline Hawkes worked with AboveNet to assess its alternatives, considering the public debt markets, private debt and/or equity, strategic partnerships, joint ventures, etc. During this time, the Company made strides in forming potential relationships with key strategic partners. In November, to our delight, the public markets opened to Internet and Internet related companies. Legal counsel amended the S-1, re-filed, and the Company prepared for its roadshow. After two long weeks on the road in Europe and in the United States, AboveNet became a public company, raising $69.5 million of proceeds. WAY TO GO ABOVENET! We are excited about the AboveNet opportunity and will continue working with the Company to make it a long-term success.