Video Ringtone Provider Vringo Raises $11 Million In IPO

Vringo

Video ringtone provider Vringo has raised $11 million in an initial public offering, the company said Tuesday.

The company, which has never posted a profit, said it had priced 2.4 million units at $4.60 each, putting it near the bottom of its expected price range of $4.50 to $5.50. In January, Vringo had projected raising $13.8 million of equity through the IPO.

According to Dow Jones, Vringo had revenue of $30,000 in the first quarter, compared with none a year ago and $20,000 for all of 2009. The company recently moved from offering their 4,000 ringtones free of charge to a paid monthly subscription model in partnership with mobile carriers.

The IPO is expected to close June 25, 2010. The company said it will use the money for research and development, capital expenditures, and sales and marketing among other items.

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