Faced with a probable chilly welcome on Nasdaq,
has withdrawn the draft prospectus it filed with the United States Securities and Exchange Commission in late March 2000.
XaCCT chairman Eran Wagner explains that scrapping the company's plans to hold an initial public offering on Nasdaq isn't only a factor of the adverse market conditions. After filing a draft prospectus, companies enter a silent period, he noted. But the imposed "silence" precluded the company from disclosing information, which hindered it in taking alternative financing steps.
Wagner added that the company had not given up its concept of floating on Nasdaq. It has simply put the plan on ice.
XaCCT has already trembled on the brink of a Nasdaq IPO twice. But given the ice coating the primary market, for now it will have to settle for private funding.
In its first draft prospectus, XaCCT wrote that it meant to raise $75 million. Its underwriters,
, did not disclose the share's price range. But estimates put it at $15 a share.
The prospectus expired on June 2000. XaCCT, which develops data management and billing systems for IP-based communication networks, filed a renewed draft prospectus with the SEC. The second draft cited an issue of 5 million shares at a range of $9 and $11 per share. Had the IPO closed at mid-range, the company would have raised $50 million at $270 valuation.
XaCCT is not giving up the dream
With the second draft prospectus now history, XaCCT can move onto completing a private placement already begun. The company is thought to be raising between $30 million to $40 million at a post-money company valuation of $340 million.
XaCCT is managed by Eric Gries. Eran Wagner serves as chairman and Limor Schweitzer as CTO. XaCCT's biggest shareholder is holdings company
(Nasdaq:AMPL). Other stockowners are the company founders, Eran Wagner and Limor Schweitzer, and Israeli venture capital funds