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Angie’s List prices shares at $13 for stock offering

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Angie’s List Inc. CEO William Oesterle is among the biggest sellers of company stock in a secondary offering that has been priced at $13 per share.

The Indianapolis-based company said in a public filing Tuesday that it plans to sell 8.4 million shares in the offering.

The company is selling 703,235 shares of the common stock, while company stockholders are selling the remainder.

Proceeds from the sale of the company's shares will be used to finance the company’s advertising campaign to drive membership growth and for general corporate purposes, including working capital.

Oesterle is selling 220,641 shares, and board member John Biddinger is selling 125,930 shares, according to the filing.

Scott Brenton, the company’s former chief operating officer, who left in April to join One Click Ventures LLC in Greenwood, is selling 314,826 shares.

Several investment firms also are shedding stock, including locally based City Investment Group LLC, an affiliate of City Securities Corp., which is selling 125,930 shares.
 
The largest seller is Boston-based venture capital firm Battery Ventures, which is unloading 3.8 million shares.

Angie’s List announced its intention to sell the shares on May 2. The company said in the filing that the offering will help increase its “public float.” Too many shares owned by insiders makes it difficult to have an active market for buyers and sellers of a company stock.

Angie’s List staged its initial public offering in mid-November, raising $114 million. The company sold 8.8 million shares for $13 each. The stock traded as high as $18.75 on the opening day but since has fallen back, opening at $13.14 Wednesday morning.

The company provides its members online consumer reviews of plumbers, electricians and other service providers.

Angie’s List lost nearly $13.5 million in the first three months of 2012 on revenue of $31.1 million.
 

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  • I want my money back
    The city and state have poured in millions into Al and his buddy Bill. I think both entities should be repayed before the ownership reaps the benefits from raping the company. If the state has any money in AL than Murdock should resign and quit his run for senate. In otherwords let Chrysler go down, but prop up a phony company. yeah rah Mitch.
  • ???????
    Only in crony capitalistic times can a CEO, CMO, and COO walk away multimillionaires and none of them could make that company profitable in 16 years. I want that tax break paid back before Bill runs away.
  • What are they going do with that income?
    Still doing national advertising on the Rush Limbaugh show. No thanks, Angie; methinks I know where you also spend your political contributions!
  • Who is buying?
    If there is anyone out there that thinks this is a good investment please let us in on the secret. 700,000 company shares will buy about 2 months of advertising for the company. What happens when the marketing money runs out and memberships dry up? Short this stock today.
  • Oops
    Every single one of the "shares being sold" figures is wrong. The numbers in the article came from the "Repurchase of Common and Preferred Stock" section of the filing. The correct numbers are listed in the "Principal and Selling Stockholders" section.
  • Who is Shorting The Stock?
    This is going to be interesting...

    http://investor.angieslist.com/sec.cfm

  • Fraudville
    Anyone notice it has been nonstop white collar crime since Daniels (who looted IPL) entered office? Just wait till he's gone and other things come out. Like where the $200 million really went
  • Are Hoosiers Unwitting Investors?
    Let me guess, Richard Mourdock thinks this is a great investment for Indiana treasury?

    Maybe Governor Daniels should be asked about public pension funds being used to support his campaign manager?
  • Red Flag
    Why would ANYONE buy this?!!!! Usually board members continually BUY stock when they have confidence in the company. One guy selling his shares already left the company! WOW!

    Sidenote - the services of angieslist are obsolete and have been since inception
  • Rats Off a Sinking Ship
    I guess if someone is dumb enough to buy the shares......
  • Escape pod?
    If the point is to raise operating revenue for the company, it's interesting that the company is only offering 700,000 shares, while executives and private investors are looking to sell nearly 2,500,000 shares. Has the writing on the wall become too large to shield from the general public for much longer?

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  1. to mention the rest of Molly's experience- she served as Communications Director for the Indianapolis Department of Public Works and also did communications for the state. She's incredibly qualified for this role and has a real love for Indianapolis and Indiana. Best of luck to her!

  2. Shall we not demand the same scrutiny for law schools, med schools, heaven forbid, business schools, etc.? How many law school grads are servers? How many business start ups fail and how many business grads get low paying jobs because there are so few high paying positions available? Why does our legislature continue to demean public schools and give taxpayer dollars to charters and private schools, ($171 million last year), rather than investing in our community schools? We are on a course of disaster regarding our public school attitudes unless we change our thinking in a short time.

  3. I agree with the other reader's comment about the chunky tomato soup. I found myself wanting a breadstick to dip into it. It tasted more like a marinara sauce; I couldn't eat it as a soup. In general, I liked the place... but doubt that I'll frequent it once the novelty wears off.

  4. The Indiana toll road used to have some of the cleanest bathrooms you could find on the road. After the lease they went downhill quickly. While not the grossest you'll see, they hover a bit below average. Am not sure if this is indicative of the entire deal or merely a portion of it. But the goals of anyone taking over the lease will always be at odds. The fewer repairs they make, the more money they earn since they have a virtual monopoly on travel from Cleveland to Chicago. So they only comply to satisfy the rules. It's hard to hand public works over to private enterprise. The incentives are misaligned. In true competition, you'd have multiple roads, each build by different companies motivated to make theirs more attractive. Working to attract customers is very different than working to maximize profit on people who have no choice but to choose your road. Of course, we all know two roads would be even more ridiculous.

  5. The State is in a perfect position. The consortium overpaid for leasing the toll road. Good for the State. The money they paid is being used across the State to upgrade roads and bridges and employ people at at time most of the country is scrambling to fund basic repairs. Good for the State. Indiana taxpayers are no longer subsidizing the toll roads to the tune of millions a year as we had for the last 20 years because the legislature did not have the guts to raise tolls. Good for the State. If the consortium fails, they either find another operator, acceptable to the State, to buy them out or the road gets turned back over to the State and we keep the Billions. Good for the State. Pat Bauer is no longer the Majority or Minority Leader of the House. Good for the State. Anyway you look at this, the State received billions of dollars for an assett the taxpayers were subsidizing, the State does not have to pay to maintain the road for 70 years. I am having trouble seeing the downside.

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