LV firm raises $48 million in going public

Tuesday, Sept. 14, 1999 | 11:36 a.m.

PurchasePro.com Inc. stock soared in its first minutes of trading this morning as the Las Vegas-based Internet company successfully completed a $48 million initial public offering.

Purchase.Pro opened trading on the NASDAQ Stock Market at $27.75 per share, a 131 percent premium over its IPO price of $12. The $12 IPO price was at the middle of the $11-$13 price range set by lead underwriter Prudential Securities.

Such huge gains in early trading are common among new Internet issues and are indicative of heavy investor interest.

PurchasePro.com builds "business-to-business electronic communities" designed to allow companies to save on costs by putting their purchase orders on the Internet for competitive bidding.

It caters primarily to small and midsize businesses in the hospitality industry, but its customer base includes Caesars Palace, Carnival Cruise Lines, Mandalay Resort Group, MGM Grand, Nevada Power Co., Park Place Entertainment, the Arizona Diamondbacks and the Phoenix Suns.

The company lost $7.1 million on revenues of $1.67 million in 1998. It trades under ticker symbol "PPRO."