The latest addition to this is the Digital Domain, which is planning to come out with its IPO very soon.
Digital Domain is in the business of computer animation & visual effects. As per the filings made to SEC or Security and Exchange Commission, the digital domain company is expected to collect around $68.8 million through its IPO or initial public offering.
Based in California, The Venice the share price of the IPO for a total of around 6 million shares to be offered should come to between $12 and $14 a share each. Based on the estimated price range, the company would have a market capitalization of $229.9 million to $268.2 million.
About the business of the company: Digital Domain creates digital imagery for feature films, television advertising, interactive visual media and the video game industry. Digital Domain stands tall among its peers with the number of achievements it has recently made. With the media going crazy for special effects, some of the feature films on which the company has worked have received Academy Awards and nominations for "Best Visual Effects." The company has worked on such films as "Titanic," "Apollo 13," "Pirates of the Caribbean: At World's End," and "Transformers."
Digital Domain's work also includes effects in television commercials for Adidas, American Express, BMW, Nike, Pepsi, Sony and other brands.
However, despite such good and strong performance, the primary reason for floating the IPO is not business expansion, but repayment of debt. The money raised for the IPO would be used to repay debt and to expand its technology development and licensing program. Proceeds will also be used for general corporate purposes, including working capital and capital expenditures. In 2007, Digital Domain reported an adjusted loss of $20.2 million on revenue of $78.8 million.
Fundamentals of Digital Domain look good, which should make it an IPO worth considering for the investors. PE Ratio (Price Earnings Ratio)and other fundamental figures should also be worth looking at, but not available at the moment.
Thomas Weisel Partners, Oppenheimer & Co., William Blair & Co., Merriman Curhan Ford & Co. and GunnAllen Financial Inc. are all serving as the IPO's lead underwriters.
| The company plans to list its shares on the Nasdaq Global Market under the symbol "DTWO." | Table of Contents |
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