ReachLocal, a fast-growing provider of online marketing services for small businesses using a localized sales force, sold 4,166,667 shares at $13, well below its anticipated range of $17 to $19. The $54 million in total IPO proceeds fell 28% short of the company's $75 million target. At its $13 IPO price, ReachLocal commands a fully diluted market capization of $378 million, a roughly 30% haircut to its proposed valuation. ReachLocal's offering, which marks the 10th consecutive US IPO to price below the midpoint of its expected range, is yet another sign that the recent market volatility continues to take its toll on valuations in the new issues market. ReachLocal plans to list on the NASDAQ under the symbol RLOC. J.P. Morgan and BofA Merrill Lynch acted as lead managers on the deal.
