Two corporate venturing funds could reap a return if US-based mobile phone service provider Motricity floats on the Nasdaq stock exchange as expected.
Intel Capital and Qualcomm Ventures are both minor investors in Motricity, which has raised more than $350m, according to US news providers PEHub and VentureWire.
Motricity revised its initial public offering terms to sell 6.75 million common shares out of a total of 38.6 million at between $14 and $16 each. Investment banks JP Morgan and Goldman Sachs are underwriters on the IPO that should garner proceeds of about $86.2m at the mid-point price of $15 per share.
After the IPO, and assuming no exercise of an option to purchase additional shares by the underwriters, Advanced Equities will be the largest shareholder with 23.7% of the total while turnround investor Carl Icahn will have 11.4%, with venture capital firms Technology Crossover Ventures and New Enterprise Associates 8.4% and 8.1%, respectively.
Since 2005, Motricity has brought in $2.5bn in gross revenue for its carrier customers through the sale of content and applications and powered over 50 billion page views through access to the mobile internet. For the year ended December 31, the company posted revenues of $113.7m and incurred a net loss of $16.3m.
The company was originally called Power By Hand but changed its name to Motricity three years before buying the mobile division of InfoSpace for $135m.