Luminant Worldwide Corp, a provider of internet and e-commerce services to Fortune 500 companies has scaled back its initial public offering which is slated for today (Thursday) for the third time, cutting expected proceeds by 8.6%. The decision to cut the offer from 5 million shares to 4.1 million was taken late Tuesday, just hours before the IPO, cuts the acquisition fund that Luminant hopes to raise from $80m to around $73.1m. Shares will start trading at $18 – above the $15 to $17 price range set on September 7. Behind the scenes adjustments amid a volatile IPO market since July saw offer prices chopped and changed between $10 and the final $18 rate, announced late Tuesday.
As Computergram went to press Luminant could not be contacted so it is not known whether the reduced windfall will enable the firm to complete its post-IPO plan to snap up eight other internet and e-commerce services firms. In its July filing with the Securities and Exchanges Commission Dallas-based Luminant said it would issue 12.5 million shares at between $11 and $13 each.
Luminant’s offering still stands as the biggest IPO to hit the market this week. Chairman Michael Jordan, former CEO of US broadcast network CBS will retain 4% of the firm after it goes public. Advertising giant Young and Rubicam is tipped to take a 13% stake in the sell-off. Last year Luminant posted a net loss of $110.9m on revenue of $54.8m. á
