Rubicon Project, whose online-advertising platform reaches 96% of internet users in the U.S., filed to raise $100 million in an initial public offering.
The figure is a placeholder used to calculate fees and may change. The Los Angeles-based company intends to use the funds raised in the IPO for marketing and research and development, and may seek acquisitions, according to the filing today.
Advertising-technology companies that went public over the last year have garnered mixed reactions from investors. Shares of Rocket Fuel almost doubled in their September debut and are up 82% since the IPO, while YuMe has slipped 23% since it went public in August. Still, the prospects for the industry prompted TubeMogul, a maker of software for digital marketing, to plan for an IPO this year, people with knowledge of the matter said.
Rubicon is backed by Clearstone Venture Partners, a Santa Monica, Calif.-based venture capital firm, which has a 24% stake. News Corp., the media conglomerate founded by billionaire Rupert Murdoch, owns 21% of Rubicon.
Rubicon's loss in the nine months through September widened to $9.2 million compared with the year-earlier period, even as revenue increased 48%, the filing shows.
Morgan Stanley, Goldman Sachs Group Inc. and Royal Bank of Canada are managing the offering. Rubicon plans to apply to list its shares on the New York Stock Exchange under the symbol RUBI.
~ Bloomberg News ~