Loyalty Alliance IPO watch: The communication company marketing service solution provider Loyalty Alliance filed the IPO registration statement again and intends to sell 5.1 million ADSs (1ADS = 12 ordinary shares) at an issue price range of $12 to $14. The company expects to receive net proceeds of approximately $66 million and command a market value of $195 million on the basis of an assumed public offering price of $13, the median of the previously announced Loyalty Alliance IPO price range
Loyalty Alliance intends to list on the Nasdaq under the symbol “LAEC,” Macquarie Capital and Needham & Co. are working as the lead underwriters for the Loyalty Alliance IPO. The company was founded in October 2000 and engaged in the development of electronic discount coupon business through telemarketing, Internet marketing services.
The company postponed the previous listing program last August and previously intended to issue 5.03 million ADSs at the the price range of $14-$16 to raise funds of approximately $75 million.
Loyalty Alliance generated revenues of $310 million for 2011, an increase of 76% compared with a year ago; net profit of $ 9 million compared with $1 million in the same period last year. The company booked $11.08 million, $10.24 million and $14.67 million in sales for 2008, 2009 and 2010, respectively.
The majority of the company’s revenues were derived from the expansion agency business for China Unicom, which accounted for 98.1%, 81.1% and 73.3% of the total revenue in 2008, 2009 and 2010, respectively. In addition, about 3% of the revenues were generated from China Telecom in 2010.
Loyalty Alliance IPO