Chapters Online Inc. completed its initial public offering on September 21, raising aggregate gross proceeds of C$45.6 million (US$31 million). The offering topped the company's expectations of C$30“35 million (News, Aug. 16). Canada's newest online retailer made its debut on the Toronto Stock Exchange under the symbol COL, with a total of 3.375 million common shares priced at US$9.18.
Chapters Online has previously stated that it would use the proceeds of the IPO to help fund marketing initiatives, strategic alliances and technological and hardware advancements. The online retailer will also use a portion of the proceeds to invest in complimentary technologies and services.
"The funds raised from the IPO, combined with the C$15 million [US$10.2 million] invested by Sequoia Capital, give Chapters Online significant capital to execute on our business strategy," Larry Stevenson, CEO of Chapters Online Inc. and Chapters Inc., said in a statement.
Chapters Inc. will retain a 72% ownership stake in Chapters Online, or a 70.3% if the over-allotment option is exercised. Chapters Online's database lists more than 2.5 million book titles, 46,000 music CD titles and 28,000 videotape and DVD titles. It also offers a limited selection of software products, which the company intends to expand in the near future.
