November 22, 2005

Korean content provider WiderThan Co. expects to net more than $50 million with its planned initial public offering, according to documents filed with the Securities and Exchange Commission late last week.

WiderThan, which sells ringtones, ring-back tones, games and other content, will issue 6 million American Depositary Shares on the Nasdaq Stock Exchange with an estimated price of $14 to $16 per share.

Underwriters JPMorgan, Lehman Brothers and Merrill Lynch & Co. have an option to purchase an additional 900,000 shares to cover overallotments.

The IPO could be worth up to $110 million, according to the filing. WiderThan provides entertainment content to 42 operators in 17 countries, including Cingular Wireless L.L.C., Sprint Nextel Corp., T-Mobile USA Inc. and Verizon Wireless.

The company generated 80 percent of its revenue last year from Korean operator SK Telecom, WiderThan's second-largest shareholder.

Last year, WiderThan generated $72 million in revenue and $2.14 million profit. The content provider does business in the United States under the Ztango brand.

WiderThan hopes to be listed on the Nasdaq under the symbol WTHN.

Source: RCR News