ReachLocal Slashes Price Of IPO

ReachLocal

Not a good omen for the string of digital media companies that have filed to go public in recent months. ReachLocal, which is likely to start trading on the Nasdaq stock market tomorrow, has priced its shares at $13, according to a Reuters report. That’s a big discount to the $17 to $19 the company had said it hoped to sell its stock at. That means the IPO is likely to generate about $60 million, instead of up to $90 million. The cut is likely a reflection on the broader market; IPO watcher Renaissance Capital says it’s “the 10th consecutive US IPO to price below the midpoint of its expected range.” We’ll be watching how ReachLocal’s stock performs tomorrow.

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