(By Balachander) LifeLock Inc. (NYSE:LOCK), a provider of identity theft protection services, has priced its initial public offering of 15.70 million shares at $9.00 apiece, below the low end of its expected price range.
The Tempe, Arizona-based company had estimated an IPO offering price between $9.50 and $11.50, according to an amended filing with the U.S. Securities and Exchange Commission on September 19.
The shares made their public debut on the New York Stock Exchange under the ticker symbol LOCK on Wednesday.
LifeLock, founded in 2005, is offering a total of 15.5 million shares, while 200,000 shares are being offered by certain selling stockholders.
As of June 30, 2012, the company served nearly 2.3 million paying members, the regulatory filing showed.
For the six months ended June 30, 2012, LifeLock earned $11.6 million on revenue of $125.5 million. Net income included a $14.3 million income tax benefit resulting from the company's acquisition of ID Analytics early this year.
The company posted a net loss of $4.3 million on revenue of $193.9 million for the year ended December 31, 2011.
Identity theft has been the most reported consumer complaint in the United States for the past 12 years, according to the Federal Trade Commission (FTC).
Javelin Strategy & Research estimates that 11.6 million adults, or 4.9 percent of the adult population in the United States, were victims of identity fraud in 2011.
In addition, Javelin Strategy & Research estimates that the total cost of identity fraud to consumers and enterprises in 2011 was roughly $18 billion in the United States.
LifeLock has granted the underwriters a 30-day option to purchase up to an additional 2.355 million shares from LifeLock.
The company said it will not receive any proceeds from the sale of shares by the selling stockholders.
Goldman, Sachs & Co. (GS), BofA Merrill Lynch, and Deutsche Bank Securities Inc. are the joint book-running managers for the offering.