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Boston's Carbonite cuts IPO price amid market chaos [Boston Herald]
[August 10, 2011]

Boston's Carbonite cuts IPO price amid market chaos [Boston Herald]


(Boston Herald (MA) Via Acquire Media NewsEdge) Aug. 10--Online data backup company Carbonite Inc. has slashed its expected haul from an initial public offering from over $100 million to between $62.5 million and $68.8 million, according to a revised offering filed today.



The Boston-based company plans to sell 6.25 million shares of its stock at $10 to $11 per share -- down from the share price range of $15 to $17 in a previous IPO regulatory filing.

Carbonite reportedly postponed its initial public offering from yesterday to today, as several other companies expected to go public also delayed IPOs due to the stock market turmoil of the past week.


Flybridge Capital Partners general partner Michael Greeley said the cut in share price likely means investors were backing away but Carbonite will take the plunge now because it needs capital to grow.

"They'll plow ahead. They'll raise $60 million," Greeley said. "But if they come out at $10, and it closes below $10, it's very tricky to manage investor expectations. It'll be a lot of work to get to $20. But they're a great company, there's no reason they can't do it." Carbonite had about 1 million customers as of April 30 and sales of $54.1 million last year, according to its IPO filing in May. The company, which charges consumers a $59 flat fee for one year of unlimited online backup, secures about 200 million data files per day.

brendan.lynch@bostonherald.com ___ To see more of the Boston Herald or to subscribe to the newspaper, go to http://www.bostonherald.com.

Copyright (c) 2011, Boston Herald Distributed by McClatchy-Tribune Information Services.

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