Carbonite Stocks Could Rise To $122.2 Million

Carbonite, a Boston-based company that charges customers $59 a year to backup computer files, said at the end of last week that its initial public offering of stock could rise to $122.2 million. That would depend on whether underwriters exercise options to buy extra shares. Carbonite had initially announced its IPO in May, at $100 million. The company said in its filing with the U.S. Securities and Exchange Commission that it expects to sell 6.2 million shares, priced between $15 and $17 a share. If all goes to plan, the offering would raise between $93.7 million and $106.2 million, giving the company a value of up to $408 million. However, there is a 30-day option for underwriters to buy up to 937,500 additional shares. That would raise the total number of shares sold to 7.2 million, and that is where the figure of $122.2 million comes in. Carbonite aims to be listed on the NASDAQ exchange with a ticker of CARB. Carbonite was founded six years ago by David Friend and Jeff Flowers, and the company generated revenue of $38.6 million in 2010. During the first six months of 2011, Carbonite generated revenue of $27.2 million. Still, 2011 has seen Carbonite lose $10 million due to heavy investment in advertising and marketing. That is offset against the fact that Carbonite has 1 million users in 100 countries. It will be fascinating to see what the immediate future holds for Carbonite, and the option that the underwriters choose.