NEW YORK (Reuters) – 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)