initial public offerings (IPOs) trading on American exchanges

Monday, June 10, 2013

Gogo (GOGO) sets terms for $176M IPO

Gogo Inc., which provides in-flight Wi-Fi access to airlines such as Delta and American, hopes its long-delayed IPO will get cleared by investors.

The Itasca, Illinois-based company said Monday in a filing with securities regulators that it intends to raise $165 million to $187 million by selling up to 11 million shares to the public at $15 to $17 per share.

Gogo Inc., a provider of in-flight connectivity, plans to sell 11 million shares at between $15.00 and $17.00 apiece in an initial public offering (IPO) of common stock.  

At the midpoint of the proposed range, the Itasca, Illinois-based company would raise around $176 million and command a market value of $1.38 billion.

The company offers in-flight internet connectivity and other voice, data and entertainment products and services. Its suite of connectivity services include: passenger connectivity, passenger entertainment, in-flight portal and operations-oriented communications services.

In March 2013, the company entered into an agreement with Delta Air Lines to provide Ku-band satellite connectivity services on its entire international fleet. In February 2013, Gogo Vision became available to passengers on four aircraft operated by the international carrier Scoot, which serves Singapore, Australia, China, Japan, Taiwan and Thailand. 

Gogo plans to use the net proceeds from the offering for working capital and other general corporate purposes, including costs associated with international expansion.

For the year ended December 2012, the company posted a net loss attributable to common stock of $95.64 million on revenue of $233.5 million.

The company has applied to list its common stock on the NASDAQ under the symbol "GOGO." 

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