*Prices at $13/shr vs $17-$19 range-underwriter
*Sells 4.17 mln shares, raises about $54.17 mln-underwriter
NEW YORK May 19 Internet marketing company
ReachLocal Inc RLOC.O priced shares in its initial public
offering 28 percent below the midpoint of the expected range on
Wednesday, according to an underwriter.
The company, based in Woodland Hills, California, sold 4.17
million shares for $13 each, raising about $54.17 million. It
had planned to sell shares for $17 to $19 each.
ReachLocal sells services to maximize the effectiveness of
online advertising by small and medium businesses. In September
the company acquired the roughly 53 percent of its Australia
operations that it did not already own.
ReachLocal reported revenue of $63.63 million in the three
months ended March 31, up 48.9 percent from the same period a
year earlier. It reported a net loss of $2.25 million, 0.1
percent narrower than a year earlier.
Shareholders in ReachLocal include funds affiliated with
VantagePoint Venture Partners and Rho Ventures. It said it
would use proceeds from the offering for working capital and
general corporate purposes.
Underwriters were led by JPMorgan and Bank of America
Merrill Lynch. The shares are expected to begin trading on the
Nasdaq on Thursday under the symbol "RLOC."
(Reporting by Clare Baldwin)