Carbonite Raises $62.5 Million Pricing IPO at Low End of Range
Carbonite Inc., the provider of online data-backup services, raised $62.5 million after pricing its U.S. initial public offering at the low end of a reduced range.
The Boston-based company, which lets users save and access computer files remotely using so-called cloud storage, sold 6.25 million shares yesterday at $10 each, according to data compiled by Bloomberg, after offering them for $10 to $11. Earlier, Carbonite had lowered the amount it was seeking by as much as 41 percent, according to a regulatory filing.
Carbonite completed its share sale after U.S. stocks slid, dragging the Dow Jones Industrial Average to the lowest level since September 2010. At least 12 U.S. initial offerings seeking a total of more than $1.8 billion have been shelved or scrapped back since Aug. 4. The shares will list on the Nasdaq Stock Market under the symbol CARB.
Proceeds from the sale will be used for working capital, Carbonite said in the filing with the U.S. Securities and Exchange Commission. The company announced its IPO in May, joining a flood of new filings for share sales.
Carbonite has reported total losses of $87.9 million since it was founded in 2005, according to the filing. The company had about $16 million of cash at the end of June, enough to fund operations for at least 12 months. Sales increased 63 percent in the six months through June to $27.2 million.