Motricity Lowers IPO Price Range to $10 to $11
Motricity’s IPO isn’t attracting the kind of interest the company had hoped for. The Bellevue, WA-based maker of wireless technology has cut its forecasted IPO price range.
Motricity (NASDAQ: MOTR) now hopes to price its initial shares at $10 to $11 each, down from an earlier goal of $14 to $16, according to Renaissance Capital. The company is also scaling back its ambition on the number of shares it plans to offer, bringing that down to 5.9 million shares, which means it could raise $62 million for its coffers, down from about $86 million that it was shooting for at the outset of this week. It’s a long shot from the $250 million goal Motricity established when it first published its IPO prospectus back in January.
The company, which I wrote about on Monday, arrived on the local tech scene in late December 2007 when it acquired the mobile division of Infospace for $135 million. Motricity’s mCore platform is now being used by four of the world’s 10 biggest global wireless carriers, and provides customized access to the Web for 35 million people a month using wireless devices, according to the prospectus. Motricity generated $113 million in revenue a year ago, and had a net loss of $16 million.