Shares of online marketing company ReachLocal surged more than 15 percent Thursday after the company’s initial public offering priced below expectations, despite a drop in broader markets.
ReachLocal, based in Woodland Hills, Calif., sold 4.2 million shares to initial investors for $13 each, raising $54.2 million. It had hoped shares would fetch between $17 and $19.
ReachLocal Inc. helps small to mid-sized businesses target local customers. It has posted losses for the past three years, and said in a regulatory filing that it expects net operating losses for the “foreseeable future.”
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