DivX Holds IPO This Week

    The topic of online video is hotter than ever. Therefore, the moment that the American company DivX chose for the initial issue of shares can be called very successful.

    A small company from San Diego called DivX (formerly DivXNetworks) is known worldwide as the developer of one of the most popular MPEG-4 codecs . She receives the bulk of revenue from royalties from equipment manufacturers. Now the company is preparing for an IPO . The company should be listed on Nasdaq on Friday, September 22, under the ticker “DIVX”.

    Thanks to the initial public offering, it is planned to raise up to $ 104 million. About 27% of DivX shares (9.1 million shares) will be thrown on the exchange at a price of $ 12 to $ 14. If everything goes according to plan, the total capitalization of the corporation will be about $ 468 million. For comparison, the developer of the alternative online video format, RealNetworks Corporation , has a capitalization of around $ 1.6 billion.

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