Xoom IPO Priced Higher Than Expected

Before you go, we thought you'd like these...
Before you go close icon

World currencyAn international money transfer company, Xoom Corp. (NASDAQ: XOOM), held its initial public offering this morning. The shares were offered at $16 apiece, above the estimated range of $13 to $15 a share. About 6.33 million shares were offered, and gross proceeds will reach more than $100 million. Of that, about $77.7 million will go to Xoom.

The company is selling 5.22 million shares, and certain shareholders are selling an additional 1.1 million shares. The underwriters have an option on an additional 948,750 shares.

Xoom anticipates net proceeds of $74.7 million ($88.8 million if the underwriters exercise their option), and the company said it will use the proceeds for working capital and general corporate purposes. Xoom may also use some of the proceeds to acquire "complementary businesses, products or technologies," but has not made specific commitments yet.

Xoom's chief competitor is the venerable Western Union Co. (NYSE: WU), and the new company makes its money primarily from transaction fees for its international money transfers. Unlike other international transfer firms, Xoom originates all its transactions online and its users can fund the transfer with a U.S.-based bank account, credit card or debit card. The company currently can make transfers between the United States and 30 countries.

As of 10:00 a.m. ET, no shares had yet been traded.


Filed under: 24/7 Wall St. Wire, Financial Stocks, Internet, IPOs Tagged: featured, WU, XOOM
Read Full Story

Markets

S&P 500 2,374.15 25.46 1.08%
DJIA 20,763.89 216.13 1.05%
NASDAQ 5,983.82 73.30 1.24%
DAX 12,476.29 21.31 0.17%
NIKKEI 225 19,079.33 203.45 1.08%
HANG SENG 24,429.01 289.53 1.20%
USD (per EUR) 1.09 0.00 0.20%
USD (per CHF) 1.00 0.00 -0.07%
JPY (per USD) 110.32 0.68 0.62%
GBP (per USD) 1.28 0.00 0.26%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts
If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic
Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside