RealD Raises $200 Million in 3-D Movie Projector Maker’s IPO

RealD Inc. (TSRX), the maker of 3-D movie projectors and glasses used to show James Cameron’s “Avatar,” raised $200 million selling shares above the forecast range in its initial public offering.

RealD priced 12.5 million shares at $16 each after offering 10.75 million for $13 to $15, according to Bloomberg data and its regulatory filing. The company, which plans to expand in 3-D televisions, computers and video games, will use the money to pay debt and for possible takeovers, the filing showed. Qlik Technologies Inc. (QLIK), a maker of software for businesses, also convinced investors to pay more than its high-end offer price, raising $112 million.

The deals came after interactive whiteboard maker Smart Technologies Inc.’s (SMT) initial sale and pushed the amount raised from U.S. offerings above $1 billion this week. IPO filings climbed to the highest since 2007 last quarter even as deals worldwide were canceled at the fastest rate since the collapse of New York-based Lehman Brothers Holdings Inc.

JPMorgan Chase & Co. (JPM) and Minneapolis-based Piper Jaffray Cos. led the offering from RealD. The company starts trading on the New York Stock Exchange tomorrow under the ticker RLD.

RealD, the Beverly Hills, California-based company that collects fees from theaters that use its projectors, has lost money in every year since 2005, when its equipment was first used to show 3-D movies, according to its filing with the Securities and Exchange Commission.

‘Avatar’ Sales

“Avatar,” the futuristic adventure movie, has taken a record $2.73 billion of worldwide box-office receipts since its December release, according to Box Office Mojo, a researcher based in Sherman Oaks, California.

Shamrock Capital Advisors, the private equity firm based in Burbank, California, was selling 1.4 million shares in RealD’s IPO, the filing showed. The fund is affiliated with Shamrock Holdings of California Inc., which was founded by Roy Disney in 1978, according to the Shamrock Web site.

At the midpoint price of $14, RealD had an enterprise value, or the sum of its stock and debt minus cash, of 22 times estimated earnings before interest, taxes, depreciation and amortization, a report from London-based researcher Independent International Investment Research Plc showed.

IMAX Corp. (IMAX), the Mississauga, Ontario-based operator of big- screen movie theaters, and Dolby Laboratories Inc. (DLB) of San Francisco, which RealD cites as its main competitors, are valued at 7.5 times and 12 times enterprise value to estimated Ebitda, respectively, according to the report.

Qlik priced 11.2 million shares at $10 each, more than the $8.50 to $9.50 the Radnor, Pennsylvania-based company originally sought. The sale was managed by New York-based Morgan Stanley (MS), Citigroup Inc. (C) and JPMorgan.

Smart Technologies, which yesterday raised $660 million in the second-largest U.S. IPO this year, advanced 0.3 percent to $17.05 in New York today.

To contact the reporter on this story: Kristen Scholer in New York at kscholer@bloomberg.net; Lee Spears in New York at lspears3@bloomberg.net.

To contact the editor responsible for this story: Daniel Hauck at dhauck1@bloomberg.net.

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