Glu rings up $84M in IPO

Glu Mobile Inc. raised $84 million with an initial public offering priced near the top of its range.
The San Mateo, Calif.-based wireless game maker offered 7.3 million common shares at $11.50 compared with a $10 to $12 per-share forecast range. The stock gained 4 percent out of the gate, climbing 45 cents to $11.95 Thursday morning.
Glu changed its name from Sorrent Inc. following the 2004 acquisition of Macrospace Inc. The firm specializes in licensed titles and boasts a portfolio including Deer Hunter, Diner Dash, Monopoly and a host of branded games from Fox Sports.
Market research firms place Glu among a group of several publishes chasing EA Mobile Inc., which dominates the space. EA jumped into mobile gaming with the $680 million acquisition of Jamdat Mobile Inc., which became the first pure-play mobile game maker to go public in 2004.
Glu reported revenue of $46 million last year, nearly doubling the $26 million it generated in 2005, but the company has yet to turn a profit. It narrowed its losses last year to $12.4 million after reporting $18 million in losses in the prior year.
Goldman, Sachs & Co. served as the sole book-runner for the offering and Lehman Brothers Inc. acted as co-lead manager. Glu gave the deal’s underwriters a 30-day option to buy another 1.1 million shares to cover over-allotments.