Motricity, company that provides mobile data, to raise as much as $101 million in IPO
By APFriday, June 11, 2010
Motricity to raise as much as $101 million in IPO
NEW YORK — Motricity Inc., a company that helps wireless carriers deliver data service to their customers, is expected to raise as much as $101 million through an initial public offering next week.
The company’s mCore service allows mobile customers to access the Web applications that are becoming more and more popular on cell phones. It promises to help carriers cut costs and boost their average revenue per customer, a closely watched gauge in the telecommunications business.
In a recent filing with the Securities and Exchange Commission, the company said it plans to sell about 6.8 million shares at between $14 and $16 each. It will be listed on the Nasdaq under the ticker symbol “MOTR.”
After expenses, Motricity said the proceeds should come to about $86 million. It plans to use the cash for investments and acquisitions, the company said.
Motricity, founded in 2001 and headquartered in Bellevue, Wash., lists most of the major U.S. carriers as customers, including Verizon Wireless, AT&T Inc., Sprint Nextel Corp. and T-Mobile USA.
For 2009, it reported a net loss of $16.3 million on revenue of $113.7 million. That loss narrowed from $78 million on revenue of $103.2 million, a year earlier. It lists no debt on its balance sheet.
