Adult site operator FriendFinder shelves IPO
NEW YORK (Reuters) - Social networking company FriendFinder Networks Inc FFN.N indefinitely shelved its planned $220 million initial public offering on Friday, citing market conditions.
FriendFinder runs websites such as BigChurch.com, a site for single Christians, but derives its revenues primarily from its adult-oriented offerings such as AdultFriendFinder.com and Cams.com, according to a prospectus filed with the U.S. Securities and Exchange Commission.
The company, which was bought by the publisher of men's magazine Penthouse for $500 million in 2007, did not say when it might again try to price the IPO, but said in a statement it would not proceed "until market conditions improve."
FriendFinder intended to sell 20 million shares for between $10 and $20 each and use the proceeds largely to pay down debt. FriendFinder first filed for the IPO in December 2008, and initially sought to raise as much as $460 million.
The IPO, was delayed last week when the SEC said it had questions regarding the offering, and had been set to price this week.
FriendFinder, based in Boca Raton, Florida, reported net revenue of $244.4 million in the nine months ended September 30, up slightly from $243.9 million in the same period a year ago. It reported a net loss of $27.4 million, narrower than its $32.3 million loss a year ago.
RenCap and Ledgemont Capital Markets LLC managed the IPO.
The company had planned to list its shares on the New York Stock Exchange's Amex under the symbol "FFN."
(Reporting by Phil Wahba, editing by Dave Zimmerman)
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