Czech anti-virus firm AVG sets IPO price

AVG Technologies set the pricing of its initial public offering of 8.0 million ordinary shares on NYSE at $16.00 per share

Brian Kenety 2.2.2012

Czech-founded Internet and mobile security software group AVG Technologies — due to begin trading on the New York Stock Exchange on Thursday —has set the pricing of its initial public offering of 8.0 million ordinary shares at $16.00 per share (the low end of the $16-$18 range initially announced).

Half of the ordinary shares are being offered by the Netherlands-registered AVG and half by selling shareholders — some of which have granted the underwriters a 30-day option to buy up to an additional 1.2 million shares to cover over-allotments. AVG intends to use the money raised in the IPO for general corporate purposes, including investments in property and equipment.

The company’s overall revenue grew to $217.2 million in 2010 from $113.8 million in 2008, with sales through the first nine months of 2011 reaching $198.1 million. Net income grew to $67.2 million in 2010 from $33.1 million in 2008. Through the first nine months of 2011, AVG’s profit stood at $104.8 million.

In AVG’s filing to the US Security and Exchange Commission (SEC) in mid-January, it said the selling stockholders include Intel Capital, Grisoft Holdings and PEF V Information Technology II, while private equity firm TA Associates would not sell any shares in the IPO.

The bookrunners for AVG’s offering are the same ones leading Facebook’s IPO: Morgan Stanley, JPMorgan Chase and Goldman Sachs. The co-managers are Allen & Company, Cowen and Company, and JMP Securities.

AVG, founded in 1991 by two Czechs, Tomáš Hofer and Jan Gritzbach, has grown its user base to approximately 106 million active users as of September 30, 2011. It offers a product portfolio that targets the consumer and small business markets and includes Internet security, PC performance optimization, online backup, mobile security, identity protection and family safety software.