Rubicon Project Files for $100 Million Web-Advertising IPO

Rubicon Project Inc., whose online-advertising platform reaches 96 percent of Internet users in the U.S., filed to raise $100 million in an initial public offering.

The figure is a placeholder used to calculate fees and may change. The Los Angeles-based company intends to use the funds raised in the IPO for marketing and research and development, and may seek acquisitions, according to a filing today.

Advertising-technology companies that went public over the last year have garnered mixed reactions from investors. Shares of Rocket Fuel Inc. almost doubled in their September debut and are up 82 percent since the IPO, while YuMe Inc. has slipped 23 percent since it went public in August. Still, the prospects for the industry prompted TubeMogul Inc., a maker of software for digital marketing, to plan for an IPO this year, people with knowledge of the matter said.

Rubicon is backed by Clearstone Venture Partners, a Santa Monica, California-based venture capital firm, which has a 24 percent stake. News Corp., the media conglomerate founded by billionaire Rupert Murdoch, owns 21 percent of Rubicon.

Rubicon’s loss in the nine months through September widened to $9.2 million compared with the year-earlier period, even as revenue increased 48 percent, the filing shows.

Morgan Stanley, Goldman Sachs Group Inc. and Royal Bank of Canada are managing the offering. Rubicon plans to apply to list its shares on the New York Stock Exchange under the symbol RUBI.

To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

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