Thursday, May 20, 2010
ReachLocal Up 15 Percent After IPO
Woodland Hills-based ReachLocal, which helps small and local businesses place Internet advertising, was up 15.2 percent after its IPO Thursday, closing at $14.98, up $1.98. The firm sold 4,166,667 shares of stock at $13.00 per share, after pricing below its initial offering range on Wednesday evening, and had traded as high as $15.26 during the day. The firm, which is headed by Zorik Gordon, was venture backed by VantagePoint Venture Partners, Rho Ventures, Galleon Group, European Founders Fund, and others. The firm's stock was up in its debut despite a down market for the day, with the NASDAQ down -4.11 percent to 2,204.01.
ReachLocal (RLOC) joins MaxLinear (MXL) among the Southern California companies which have gone from IPO filing to the markets in recent months: among companies still lined up for the market are Los Angeles RealD, Pasadena-based Green Dot, San Diego-based Fallbrook Technologies, Pasadena-based Genmark Diagnostics, Los Angeles-based GameFly, San Diego-based Trius Therapeutics, City of Industry-basd NewEgg, and Thousand Oaks-based Nexsan. Santa Monica-based Demand Media, the Internet content publishing run by Richard Rosenblatt, also is widely expected to be in the process of filing for an IPO.