In the SEC filing, Internet Brands Inc. announced that it has lowered its initial public offering size and now anticipates the IPO to total 6 million shares of Class A common stock and price at $8 per share.
Earlier, Internet Brands expected the offering to total about 9.6 million shares and price between $10 and $12 per share.
Internet Brands is selling about 2.35 million shares of Class A common stock and the selling stockholders named in the prospectus are selling about 3.65 million shares of Class A common stock. The company stated that it would not receive any of the proceeds from the shares of Class A common stock sold by the selling stockholders.
The company estimate that its net proceeds from the sale of about 2.35 million shares of its Class A common stock by its in this offering will be about $14.0 million, assuming an initial public offering price of $8.00 per share, and after deducting the underwriting discount and estimated offering expenses payable by the company.
Based on an $8 offering price, the company would have a market cap of approximately $334.1 million.
The selling stockholders have granted the underwriters a 30-day option to purchase up to an aggregate of 900 thousand additional shares of Class A common stock, to cover over-allotments, if any.
The company has currently no specific plans for the use of the net proceeds of this offering. The net proceeds from this offering may be used for general corporate purposes.
Internet Brands intends to list its Class A common stock on the Nasdaq Global Market under the symbol “INET.”
