Brightcove Advances as Cloud-Based Video Hoster Raises $55 Million in IPO
Brightcove Inc. (BCOV), a provider of cloud-based video hosting and publishing services, advanced 30 percent in its trading debut after raising $55 million in its initial public offering.
The stock rose to $14.30 at the close in New York, after listing on the Nasdaq Stock Market under the symbol BCOV.
Brightcove, based in Cambridge, Massachusetts, is the latest technology company to tap the public equity market. Zynga Inc. (ZNGA), the biggest developer of games for Facebook Inc., listed in December and has risen 29 percent since then. Facebook, based in Menlo Park, California, filed its public offering Feb. 1 and seeks to raise $5 billion.
Brightcove sold 5 million shares at $11 apiece yesterday, the midpoint of its $10 to $12 proposed range, according to data compiled by Bloomberg.
The company, led by Chief Executive Officer Jeremy Allaire, increased revenue 45 percent to $63.6 million in 2011 from a year earlier. Brightcove, founded in 2004, has been unprofitable since at least 2007, a regulatory filing shows.
The company said it plans to use proceeds for working capital and other general corporate purposes.
Morgan Stanley and Stifel Nicolaus Weisel led the deal.
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