Local Tech Wire
RESEARCH TRIANGLE PARK, N.C. – hopes to go public on Friday but at a sharply lower price of around $60 million, the company said in a filing with the Securities and Exchange Commission on Thursday.
The provider of data and information services for mobile telecommunications provider also said that billionaire Carl Icahn wants 1 million of its shares. Icahn already is a major investor in Motricity, which was once headquartered in Durham.
Motricity shares would be traded on the Nasdaq under the symbol MOTR.
The company cut the number of shares it is offering to 5.9 million and the share price is estimated to be finalized at $10 to $11.
In January, Motricity set an IPO target of some $250 million. That later was reduced to $100 million.
“To the extent that the underwriters sell more than 5,870,000 shares of common stock, the underwriters have the option to purchase up to an additional 880,500 shares from us at the initial public offering price less the underwriting discount,” Motricity said in the filing.
“Entities affiliated with Mr. Carl C. Icahn have indicated an interest to purchase up to 1,000,000 shares of our common stock directly from us in connection with this offering at the initial public offering price less the underwriting discount,” Motricity added.
“To the extent entities affiliated with Mr. Carl C. Icahn purchase any such shares from us, the number of shares to be sold to the underwriters may accordingly be reduced. As of May 31, 2010, entities affiliated with Mr. Carl C. Icahn beneficially owned 18.5% of our common stock on an as-converted to common stock basis.”
Motricity had originally planned to sell 6.75 million shares at a target price of between $14 and $16.
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