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November 11, 2006
OpenBC Prepares For IPO
Three year old Open Business Club AG, the company behind an online social networking site for professionals called OpenBC (soon to be renamed Xing) has mandated two investment banks, Deutsche Bank and Lehman Brothers International, to prepare for an IPO, it said in a statement issued this week.
The company, which is venture-backed, has had a quick path to get to the IPO stage. Its annual sales of close to €6M would suggest an Entry Standard listing, but OpenBC said it plans to list on the Prime Standard, the main German exchange, which has more stringent regulatory and reporting requirements.
The social networking company wants to raise capital for international expansion, which may include some acquisitions, it said. Growing the membership roster is the main goal - it currently has about 1.45M.
The more people in the network the more value the service provides to its members - goes the thinking of the firm's co-founder Lars Hinrichs, reflected in the same statement. In the fiscal year ending June, OpenBC had sales of close to €6M. First quarter sales were €2.8M. OpenBC also said it had reached breakeven.
The company plans to establish a marketplace for services, contracts, and jobs, according to Die Welt. CEO Hinrichs is quoted as saying the platform will directly compete with jobs search sites.
Read - OpenBC geht an die Börse (Die Welt)
Posted on November 11, 2006 04:51 PM | Posted to News And Updates | Web 2.0 | Permalink
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