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.