LifeLock Inc. (LOCK) began trading as a public company this morning with an initial public offering of 15.7 million shares at $9 each. The $9 per share price tag is below the original price range of $9.5 to $11.50 a share that the provider of identity theft protection services estimated in September. Shares traded lower by nearly 7 percent in the early session.
Proceeds from the IPO will help the Tempe, Arizona-based company get out from under a loan it received to acquire ID Analytics in March. ID Analytics is a credit and identification risk management company providing services for both corporate and consumer clients. LifeLock plans to use approximately $62.6 million of the capital from the IPO to repay the term loan for the purchase.
LifeLock has been blazing through cash in recent years as it maintained a frantic marketing pace to build upon its 2.3 million subscribers that pay between $10 and $25 per month for services. 2012 has been a better year to date with the company swinging a profit of $11.6 million in the first six months of the year compared to a loss of $6.1 million in the same period in 2011.
Revenue has been steadily growing at Lifelock; growing from $131 million in 2009 to $193 million in 2011 and already hitting $125.5 million in the first half of 2012.
Further, the cash burn is slowing as the upstart becomes more stable. Losses in 2009 tallied $69 million, but were shaved to $31.5 million and then $23.1 million in 2010 and 2011, respectively. So far in 2012, Lifelock is operating in the black.
Lifelock is only a portion of a busy week for initial public offerings. Dave & Buster’s Entertainment Inc. (PLAY), Berry Plastics Group Inc. (BERY), Luxfer Holdings PLC (LXFR), Regulus Therapeutics Inc. (RGLS) and FleetMatics Group Ltd. (FLTX) are also joining the public domain in deals that are expected to raise a total of $1 billion.
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