Wireless technology and service company InPhonic Inc. enjoyed a major initial public offering Monday, raising a total of $108.9 million in net proceeds. The company had initially expected to raise a total of $83.5 million.
InPhonic’s stock began trading at around $19 per share Monday, but quickly jumped to $25 per share. As of trading Tuesday, the company’s share price had leveled off to about $24.
In a filing with the Securities and Exchange Commission, InPhonic said it would use $10.5 million from its IPO to repay existing debt, $10.1 million to pay accrued and unpaid dividends on preferred stock, and would put the remainder toward working capital and other general corporate purposes, including potential acquisitions.
InPhonic operates a number of notable businesses. The company sells wireless services and handsets on the Internet through its own sites and through the likes of Yahoo!, Quixtar, MSN, AOL and Google. The company also operates Liberty Wireless, a mobile virtual network operator offering through Sprint PCS’ network. Finally, InPhonic sells wireless data services such as unified communications, wireless e-mail and mobile marketing.
InPhonic makes money from commissions, bonuses and other payments it receives from wireless carriers in connection with the activation of customers on their networks, as well as payments from customers for wireless services and devices. Last year, the company scored $136.1 million in revenues and reported a net loss of $20.2 million. In its most recent quarter InPhonic scored revenues of $54.1 million on a net loss of $1.1 million.
InPhonic is the second wireless company to launch a recent IPO. Jamdat Mobile became the industry’s first gaming firm to go public in September.<p
