Motricity Is Latest Firm To Cut Size Of IPO

Motricity mCore Marketplace announced at CTIA 2010

Motricity, which filed to raise up to $250 million in an IPO earlier this year, has now slashed its expected take from going public by more than half. The move reinforces the view that while the IPO market has certainly loosened up compared to a year ago, it is still not easy-going.

All four companies in our realm that have priced their IPOs this year have cut the size of their offerings: ReachLocal ended up raising about $60 million last month, instead of up to $100 million; also in May, TeleNav (NSDQ: TNAV) raised $56 million instead of $75 million; and Quinstreet, which went public in February, raised $140 million instead of a hoped-for up to $250 million.

Motricity, which provides back-end infrastructure to wireless carriers, says in an SEC filing it expects to sell 6.75 million shares at between $14 and $16 per share, meaning it will likely raise between $95.5 million and $108 million.

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