Venture-backed prices IPO at $14.50 to $16.50


stocks2_lrgVenture capital-backed website developer will offer 7.7m shares priced within the $14.50 and $16.50 per share in its upcoming IPO, raising as much as $127m for its owners.

The company is backed by Mangrove Capital Partners, Bessemer Venture Partners, Benchmark Capital Partners and Insight Venture Partners, which will collectively hold a 65.4 per cent stake in the business after the public listing.

None of the venture firms will sell shares in the IPO, according to the filing.

Mangrove is currently Wix’s largest shareholder with a 27 per cent interest, followed by Bessemer with 26 per cent.

Share dilution following the IPO will see the firms’ interest drop to 22.5 per cent and 21.7 per cent respectively, while Benchmark and Insight will see their stakes decline to 11 from 13.2 per cent and to 10.2 from 12.2 per cent respectively.

Wix, which will trade on the New York Stock Exchange under the symbol WIX, will use the proceeds for further product development as well as for potential acquisitions.

The company’s management team and directors own a combined stake of 49.5 per cent, which will drop to 39.7 per cent after the flotation.

In 2012, Wix reduced its net loss to $15m from $22.7m in the previous year as revenues climbed to $43.7m from $24.6m.

Earlier this year, two of the company’s backers, Bessemer and Insight, invested in intellectual asset management business Anaqua.

Insight invested $100m in June, followed by a $25m commitment from Insight a week ago.

Copyright © 2013 AltAssets