UPDATE 1-Ancestry.com prices IPO at $13.50 per share

Thu Nov 5, 2009 7:51am IST

Stocks

   

* IPO of 7.4 mln shares priced at $13.50/shr

* Price within expected range of $12.50 to $14.50

* Part of proceeds to repay loan to CIT

NEW YORK, Nov 4 (Reuters) - Spectrum Equity Investors-backed website Ancestry.com Inc ACOM.O priced its initial public offering of 7.4 million shares at $13.50 per share on Wednesday, within the expected range.

Ancestry.com, which operates a website that allows people to trace their family roots by scouring online records, will begin trading on Nasdaq under the symbol "ACOM" ACOM.N on Thursday.

The Provo, Utah-based company had expected to sell 7.4 million shares in its IPO for between $12.50 and $14.50 each, in a $100 million offering.

Ancestry.com, which said it had 1 million subscribers as of September, was founded in 1983 and is majority owned by private equity firm Spectrum, whose stake in the company will fall to 54.8 percent after the IPO from 67 percent. Spectrum bought Ancestry.com for $354.8 million in December 2007.

The existing shareholders are selling about 45 percent of the shares in the IPO, with the rest coming from the company.

Ancestry.com expects net proceeds of $48.4 million from the IPO, and will use the money in part to repay $12.1 million it owes CIT Lending Services Corp, a unit of CIT Group Inc, CITGQ.PK and use the rest for working capital.

Ancestry.com's registered users have built 12 million family trees containing 1.25 billion profiles, according to the filing.

Its revenue in the first nine months of 2009 was $164.8 million, largely from subscriptions, up 13.5 percent from the year earlier period. Over the same period, its profit rose 250 percent to $12.2 million. In 2008, each subscriber generated about $16.09 in revenues per month.

The IPO will be lead managed by Morgan Stanley (MS.N) and Bank of America Merrill Lynch (BAC.N). Underwriters will have the option to buy another 1.1 million shares. (Editing by Carol Bishopric)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-Nepal Ties

REUTERS SHOWCASE

Facebook Results

Facebook Results

Facebook beats Wall Street targets, stock hits record high  Full Article 

GM Recall

GM Recall

GM recalls 717,950 vehicles in U.S., not for ignition switches  Full Article 

Factory Sector

Factory Sector

China July HSBC flash PMI at 18-month high of 52.0   Full Article 

Breakingviews

Breakingviews

Apple winds up earnings hope for new gadgets  Full Article 

BRICS Bank

BRICS Bank

World Bank chief welcomes new BRICS development bank.  Full Article 

Streamlining Operations

Jet Streamlines

Jet Airways chairman says looking to restructure debts, talking to bankers  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Honda's India Thrust

Honda's India Thrust

Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec   Full Article 

 Boosting Output

Boosting Output

NMDC plans to boost iron ore output by two-thirds  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage