Diamond.com Going Public, Parent Company Planning To Raise $57.5 Million
July 18, 04
After months of speculation, Odimo Inc, which sells diamonds, jewelry and watches online via its diamond.com, ashford.com and worldofwatches.com web sites, has filed papers to launch an initial public offering to sell up to $57.5 million in common stock.
The company did not reveal information concerning the number of shares it plans to offer or an estimated price range for the IPO. Some of the stock will be sold by existing shareholders, according to the filing.
Odimo said it plans to use the proceeds from the IPO to pay back debt and for general company purposes.
The company reported a loss of $14.1 million on sales of $10.4 million for the three months ended March 31. In the comparable period last year, it lost $2.8 million on sales of $7.6 million.
The company's major shareholders before the offering, according to reports, include Israel’s Beny Steinmetz, with a 39 percent stake, Softbank Capital Partners LLC, with 21 percent, and GSI Commerce Solutions Inc, with 20 percent.
The company plans to list its common stock on the Nasdaq National Market under the symbol "ODMO."
Sales at diamond.com leaped last year to $50 million from $30 million in 2002 and the firm is planning aggressive growth this year.
It also announced record-breaking sales of more than $1 million per day at the end of 2003 with order volume up 180 percent on a year earlier.