May 4 (Bloomberg) -- Boingo Wireless Inc., the operator of wireless Internet hot spots, fell 10 percent after raising $77.9 million in its U.S. initial public offering.
The Los Angeles-based company sold 5.8 million shares at $13.50 each, according to data compiled by Bloomberg, after offering them at $12 to $14 apiece. Boingo declined $1.40 to $12.10 at 4 p.m. New York time in Nasdaq Stock Market trading.
Boingo has more than 325,000 wireless Internet locations in more than 100 countries, according to a company filing with the U.S. Securities and Exchange Commission. The so-called hot spots are at locations including airports, hotels, coffee shops, shopping malls and stadiums.
The company’s primary source of revenue is from individuals who buy month-to-month subscription plans, which automatically renew, or from people who access its network through a hot spot for a specific usage, according to the filing. Phone operators also pay Boingo fees to use its antenna system.
Boingo competes with AT&T Inc., Verizon Wireless and Sprint Nextel Corp., which offer Wi-Fi at airports and many businesses, and are rolling out speedier fourth-generation networks.
Proceeds from the IPO may be used to expand through acquisitions and for general corporate purposes, according to the filing. The company reported revenue of $80.4 million in 2010, an increase of 22 percent from 2009.
New Enterprise Associates Inc. and Mitsui & Co. are the biggest shareholders with stakes of about 23 percent each before the offering, the prospectus showed.
Credit Suisse Group AG and Deutsche Bank AG led Boingo’s IPO. The shares trade under the symbol WIFI.
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