Online Ad Agency ReachLocal Sets IPO Price At $17-$19 Per Share
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
ReachLocal has set the price of their IPO to $17-$19 per share according to a filing with the SEC. The company will likely raise $63 million based on the initial offering. This would put ReachLocal’s market cap to about $515.6 million based on the high point of the price range and if underwriters don’t exercise their over-allotment. Some of the proceeds from the IPO would go towards the acquisition of the company’s Australia platform.
ReachLocal made about $63.6 million in revenue in the first quarter, which is a 49% increase from the quarter a year before. VantagePoint Venture Partners owns about 52.8% of the company. After the IPO, VantagePoint would own about 46.4%. Rho Ventures’ stake in ReachLocal would decrease to 11.3% from 12.9%. Galleon Group’s ownership would drop to 5.9% from their current ownership of 6.7%. The company will trade under the symbol RLOC. [WSJ]