US-based internet services company Synacor set the range for its initial public offering (IPO) at between $10.00 and $12.00 a share on Monday, with 6.8 million shares to be issued when it floats.
Semiconductor maker Intel’s corporate venturing unit is among the Synacor’s selling shareholders, which also include venture capital (VC) firms Walden International and North Atlantic Capital, VC group Advantage Capital Partners, VC fund Crystal Internet Ventures, investment corporation Rand Capital and Access Technology Capital the VC division of investment firm Access Industries.
Intel Capital will be selling 104,000 shares in the offering, putting it in line for a low seven figure payout. Post-IPO, Intel Capital will hold 7.8% of Synacor’s stock, down from 10.4%.
Another corporate backer is Mitsui, which invested in Synacor’s $17m series C round in 2006 through its Mitsui Ventures fund. However, Mitsui will not be one of the selling stockholder in the IPO.
Using the mid-range figure as the price, Synacor expects to see proceeds of $53.1m from the sale of its stock, with capital going toward general corporate purposes. The initial filing, in November of last year, was for up to $75m.
Synacor, which has raised $59m in capital since it was founded in 2001, provides a technology service that enables internet companies to deliver premium content and services as part of their existing internet access products. Synacor previously filed for an IPO in 2007, but withdrew a year later citing unfavourable marketing conditions.
Underwriters for the offering are Merrill Lynch, Pierce, Fenner & Smith, Citigroup Global Markets, Stifel, Nicolaus & Co., BMO Capital Markets, Needham & Co. and Oppenheimer & Co. The underwriters will have the option of buying an additional one million shares.