NEW YORK-TeleTech, a Denver-based customer care service provider, planned to go public last week with 4 million shares of common stock priced from $14.50 to $16.50 each.
At the end of the first quarter, AT&T Corp.’s cellular unit was TeleTech’s single largest customer and accounted for approximately 22 percent of the company’s revenues.
“A significant portion of expected revenues for 1996 relate directly to recently introduced product or service offerings of clients, including two significant programs developed for AT&T and CompuServe, two of its largest clients,” the preliminary prospectus said.
TeleTech provides customer care services to Fortune 1,000 companies, handling incoming phone and Internet customer inquiry calls for items including new product information, enrollment in programs, technical help and complaint resolution.
By mid-June, TeleTech owned, leased or managed seven call centers in the United States and one each in the United Kingdom, Australia and New Zealand. By year end, the company plans to expand one existing call center and open up one new call center. Approximately $7.8 million of the net proceeds of the initial public offering are earmarked for this expansion.
A portion of the net proceeds also will be used to repay outstanding indebtedness under a $15 million unsecured revolving line of credit. As of mid-June, TeleTech had borrowed a total of $8.5 million at interest rates between 6.69 percent and 6.75 percent from that credit facility.
The remaining proceeds of the stock sale will be used for general corporate purposes.
Morgan Stanley & Co. Inc., New York, was lead manager of the IPO.
