Motricity IPO, An Under-Price IPO (MOTR)
Motricity (NASDAQ: MOTR) is coming public this morning, but at a lower price than had been expected. The prior $14 to $16 per share range was cut down to $10 to $11 per share and the 6.75 million previously expected was then dropped to about 5.875 million shares. The deal has priced 6,000,000 shares of common stock at $10.00 per share.
J.P. Morgan and Goldman Sachs were the joint book-running managers; co-managers are Deutsche Bank Securities, RBC Capital Markets, Robert W. Baird, Needham & Company, and Pacific Crest Securities. The underwriters have a 30-day overallotment option to purchase up to an additional 750,000 shares at the initial public offering price.
The float may be smaller than it seems on the surface. The IPO pricing does include 1 million shares which are being purchased by Carl Icahn at the IPO price. Icahn has an existing 18.5% stake in the company before the effect of the new 1 million shares.
Motricity is a mobile data solutions provider focused entirely on the rapidly growing mobile Internet market.
JON C. OGG