Business

Gogo raises $187 million from IPO of 11 million shares

Posted June 21, 2013 6:53 am

Associated Press

Gogo, an Itasca-based provider of internet services on airlines, has raised $187 million from an initial public offering of 11 million shares.

The offering was priced at $17 per share, at the high end of the projected $15 to $17 range.

The underwriters may buy up to about 1.7 million additional shares to cover any excess demand.

Gogo said in a regulatory filing that it plans to use net proceeds for working capital and other general corporate purposes, such as costs related to international expansion.

Gogo Inc. helps passengers with WiFi-enabled devices get online on more than 1,900 commercial aircraft. Some of the Itasca, Ill., company’s partners include American Airlines, Delta Air Lines and United Airlines.

For 2012, Gogo had a loss of $95.6 million on revenue of $233.5 million. That compares with a loss of $17.9 million and revenue of $160.2 million in 2011.

Shares are expected to start trading Friday on the Nasdaq under the “GOGO” ticker symbol. The offering is expected to close on Wednesday.

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