Angie’s List to Bask in Groupon’s Glow
Angie’s List Inc (NASDAQ:ANGI), an on-line consumer review website which posts reviews of plumbers, electricians and other service providers, raised $114 million in its IPO.
The site, which has more than 1 million subscribers, sold 8.8 million shares for $13 each, at the top end of the range. The shares are to be listed on Nasdaq (NASDAQ:NDAQ) under the symbol ANGI. The IPO may bask in the afterglow of Groupon’s (NASDAQ:GRPN) successful IPO earlier this month.
This news could be a nice boost for IAC/InterActiveCorp (NASDAQ:IACI). InterActiveCorp (NASDAQ:IACI) has a division called Service Magic that competes with Angie’s List (NASDAQ:ANGI), yet is larger and actually profitable. IACI could catch some analyst upgrades as Wall Street updates their models to account for a Service Magic valuation at least equal to Angie’s List.
Angie (NASDAQ:ANGI) offered 6.3 million shares while 2.5 million shares were offered by current shareholders such as Battery Ventures, Hicks, and BV Capital. To date, Angie’s List (NASDAQ:ANGI) has raised nearly $100 million from Battery Ventures, T. Rowe Price (NASDAQ:TROW), City Investment Group, Cardinal Ventures, and others.
The IPO proceeds will be utilized by Angie for advertising and boosting membership. For the nine months ended Sep 30, Angie posted revenues of $62.6 million, up 46% from the earlier year, and a loss of $ 43.2 million, up from $19 million.
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