THE KNOT RAISES $35 MILLION IN IPO
NEW YORK — The Knot Inc., an online wedding site, raised $35 million, before underwriting costs, in an initial public offering.
The firm sold 3.5 million shares at $10 each, the high end of its projected price range. Proceeds will be used for general corporate purchases, acquisitions and investments.
Theknot.com, launched in July 1997, offers a number of interactive tools, including a budget keeper, a wedding checklist, a gift registry and a place where couples can build their own Web site. It also includes e-commerce, articles and previews of collections from designers such as Carolina Herrera, Mika Itatome and Cynthia C. & Co.
In the nine months ended Sept. 30, Knot lost $6 million on revenues of $2.6 million. Merchandise revenues amounted to 26 percent of revenues. The Knot also derives revenues from sales of sponsorship and advertising contracts, publishing and the sale of travel packages.
The prospectus for the offering noted that 15.4 million page views were generated on its Web site in September with about 1,000 new couples now enrolling each day. The domestic wedding market generates more than $45 billion in retail sales annually, it said. Underwriters were Credit Suisse First Boston, Hambercht & Quist and Salomon Smith Barney.