Streaming provider fuboTV raises $183 million in IPO ahead of NYSE debut

NEW YORK (Reuters) - Streaming provider fuboTV Inc sold shares in its initial public offering (IPO) on Wednesday at $10 apiece, within its target range, to raise $183 million.

The IPO valued fuboTV at $620.2 million. The New York-based company had aimed to sell 15 million shares at a target range of $9-$11 per share. fuboTV declined to comment.

The IPO for fuboTV comes amid a boon in demand for streaming services from customers under lockdown looking for more at-home entertainment in the United States and around the world.

The company said its paid subscribers rose 47% year-on-year, reaching about 286,000 subscribers as of June 30 despite a stoppage in live sports events during the pandemic.

Founded in 2015, fuboTV began as a sports-focused streaming service before expanding to news and entertainment, adding channels such as ABC, Disney Channel, and FX.

In March, the company announced that it agreed to merge with FaceBank Group Inc, a virtual entertainment firm, a deal that valued fuboTV at $700 million, sources told Reuters. FuboTV has raised over $250 million from media companies including AMC Networks, Discovery Inc, Walt Disney Co and Viacom Inc.

In 2019, fuboTV said revenues reached $146.5 million, up 96% from the previous year, although the company’s net loss were $129.3 million. In the first six months of 2020, fuboTV said it earned $51.5 million in revenue, with net losses reaching $129.9 million.

Shares in fuboTV are set to begin trading on the New York Stock Exchange on Thursday under the symbol “FUBO.” The shares have been trading on over-the-counter (OTC) markets under the same symbol following the FaceBank merger.

Evercore, Oppenheimer & Co., and BMO Capital Markets are among the lead underwriters for the IPO.

Reporting by Chibuike Oguh in New York; Editing by Shri Navaratnam and Gerry Doyle