San Mateo, California-based iAsiaWorks, whose Asian headquarters are in Hong Kong, aims to be a one-stop internet service station for companies doing business online in Asia. Its services include internet access, consulting and web hosting. The company's 3,800 customers include DoubleClick, Nike and the Hong Kong Stock Exchange.
iAsiaWorks began commercial operations in 1997 under the name AUNET. In July 1999 it changed its name, revised its business strategy, and recruited JoAnn Patrick-Ezzell, 46, formerly chief executive of AT&T Asia-Pacific, as its CEO. The company declined to elaborate on its SEC filing, which does not give a specific date for the proposed listing, nor a price range.
"What I'd read into this is that they are going ahead and getting all the approvals for a listing, but will probably delay the listing itself until the market improves," said Jahanzeb Naseer, head of Asian internet research at ABN AMRO Asia. "There is a demand for solutions providers because a lot of people believe they are a relatively low risk area of the internet, but I'd be surprised if they actually go ahead with the listing."
Still, they may have to. The company said in its filing that it had accumulated a net loss of $33.8 million from its inception through to December 31, 1999. It also said it has had to rely on proceeds from the sale of equity to private investors to finance itself.
"Cash from operations must increase significantly for us to fund anticipated operating expenses internally," the company said in the filing. "If our cash flows are insufficient to fund these expenses, we may need to fund our growth through additional debt or equity financings or reduce costs."
iAsiaWorks said it also faces competition from some heavy-hitting US-based technology companies who plan to enter the Asian market, such as Intel, WorldCom, Level 3 and PSINet, as well as local and regional telecommunications companies.
Still, iAsiaWorks has the advantage of a well-known chief executive. As CEO of AT&T Asia-Pacific, Patrick-Ezzell was responsible for a multi-billion dollar business. Before that she was president of AT&T Online Services Asia-Pacific, where she helped develop AT&T's regional internet business. She kick-started iAsiaWorks' expansion by acquiring AT&T's Hong Kong internet business, Easy-Link, at the end of last year.
The company plans to establish new internet data centers, acquire more space on fiber optic cable systems, make acquisitions, and increase its marketing and sales organization, according to the filing.
The listing will be underwritten by Goldman Sachs, Salomon Smith Barney and Morgan Stanley.
