Angie’s List Has Eyes Trained On Raising As Much As $114.3 Million In Initial Public Offering
In the recent past, an increasing number of internet businesses have been taking to the IPO in efforts to raise funds. Joining that list is Angie’s List, the consumer-review website, which plans to raise a sum of $114.3 million in its IPO.
A filing with the US Securities and Exchange commission has it that Angie’s List plans to offer 8.8 million shares for $11 – $13 per unit. Working with the average, the Indianapolis-based internet portal would merit a $667 million price tag. Data from Bloomberg show that the company will be expecting to price the offering come Nov 16.
Angie’s List joins Zynga Inc. and Groupon Inc. in attempting to host its Initial Public Offering before Thanksgiving. Were it not for high volatility and gyrating stocks that rocked the month the August, many U.S. companies would have gone public much earlier.
Groupon Inc is an online coupon provider based in Chicago. It is attempting to pile up $580 million in its IPO this week. Zynga, which develops games for Facebook.com, plans to host their IPO before the 24th of November.
A 46% increase in the revenue saw Angie’s List make $62.6 million in the nine months ended 30th September. The filling also shows that the net loss of the company grew from $18.9million to $43.2 million.
To honour a membership fee, Angie’s List offers the consumer reviews of electricians, plumbers as well as other providers. The site’s membership has been growing and shot past the one-millionth member last month. Angie Hicks started the site in 1995 and became president before stepping down in 1998, when she left to pursue a Master’s in Business Administration at Harvard University. Currently, she is the company’s chief marketing officer.
According to the filing, the company will sell the shares via two channels. According to a prospectus, the company is to sell 6.3 million units through the IPO while existing shareholders sell the remaining 2.5 million. Sellers will include BV Capital and Battery Ventures, which must also lower their stakes from 12% to 9.3% and 18% to 15% respectively. Angie will be expected to trim her stake from 1.8% to 1.5%.
The company pegs Net proceeds from the IPO at about $66.4 million, capital that Hicks will use to finance advertising and multiplication of membership. Bank of America Corp is charged with responsibility of leading the IPO. The shares will go up as ANGI on the Nasdaq Stock Market.