While many recent Internet initial stock offerings have been buoyed by investor hopes for a market comeback, Coolsavings.com, Inc. (Nasdaq: CSAV) faltered in its debut Friday.
The company, which provides incentives for online shoppers, offered 3.3 million shares at $7 each, well below an originally planned range of $11 to $13. The shares closed at 5 17/32.
The Chicago, Illinois-based Coolsavings, which is 32 percent-owned by Australia’s Lend Lease International, had a loss of $16.9 million in 1999, on revenue of $12.9 million. Proceeds from the IPO will be used for such expenses as staffing, advertising and capital spending, the company said in a filing with the U.S. Securities and Exchange Commission.
Marketing expenses are likely to continue to increase as the company strives to boost awareness of its brand, the filing said.
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