Video ringtones provider Vringo files for $64.3 million IPO
Video ringtone solutions provider Vringo is seeking to raise an estimated $64.3 million via an initial public offering of stock and warrants, according to a Securities and Exchange Commission filing submitted Thursday. Vringo is seeking to sell at least 2.4 million units, consisting of one share of common stock and five-year warrants to purchase another two shares 10 percent above the IPO price; the firm is targeting the planned proceeds of the IPO to cover its costs of revenue, invest in R&D and finance marketing efforts. TechCrunch reports that Vringo has raised about $17.3 million in venture financing, with investors including global private equity firm Warburg Pincus, adding that the company booked just $36,000 in revenue during the first nine months of 2009 and $0 the previous year.
Vringo's video ringtone application platform enables consumers to create free ringtones from videos, images and slideshows--the clips are compatible with close to 300 handsets. The company said it plans to introduce a premium monthly subscription model in conjunction with mobile operator partners.
For more on the Vringo IPO:
- read this TechCrunch article