CampusU Inc., an online retailer and social networking hub for college students, has set the terms for its initial public offering.
The company, which derives about 71% of revenue from e-commerce, expects to sell 3.5 million shares at $5.50 to $6.50 per share. The IPO could raise as much as $22.7 million in new working capital the company will use for general corporate purposes, making acquisitions, expanding current business lines and repaying debt. Maxim Group LLC, a New York investment banking firm, is the underwriter of the deal.
CampusU operates three e-commerce sites: CampusU.com, which contains numerous interactive features and subject matter relating to college life, humor, travel, advice and entertainment; CampusFlix.com, which focuses on user-generated video on a variety of topics, including independent film and music; and LazyStudents.com, which provides research sources and advice on studying and test taking.
On CampusU.com the company carries an inventory of 8,000 name-brand software and other technology products offered at discounts of up to 80%. Through the first six months of the year, CampusU posted a net loss of $3.8 million on revenue of $9.9 million compared with a net loss of $1.5 million on sales of $4.9 million in the prior year. In 2006, CampusU had a net loss of $5.6 million on total revenue of $11.9 million. E-commerce sales totaled $8.4 million.