RealD raising real cash

RealD raising real cash

Seven-year-old 3D technology licensor RealD Inc. has yet to make a profit but intends to raise as much as $200 million in an initial public offering in capitalizing on the sudden surge in interest and demand for 3D in theaters, in homes, and in industrial applications, according to the New York Times.

First reported in the Financial Times, the IPO would ultimately seek to raise $1 billion, allowing its principal investors to cash out.

The company said its 3-D technology is in use at more than 5,300 theaters in 51 countries. For the nine months ended Dec. 25, RealD took in net revenue of $96 million but lost $28.8 million.

RealD plans to use proceeds from the offering to repay debt, but said it may reallocate funds for other uses.

RealD has invested more than $100 million in technology, according to the Los Angeles Times, such as 3D adapters that attach to digital movie theater projectors, and technology it has licensed for 3-D viewing in the home.

Shamrock Holdings, investment arm for the late Roy Disney, invested $50 million in the company, which launched in 2003. An investment group headed by Pequot Capital has pumped in another $20 million.

JP Morgan Chase and the investment firm Piper Jaffray & Co. are expected to handle the proposed IPO, which would occur by the end of June, said one person familiar with the plans.