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RealD sells 3-D to Wall Street in planned IPO

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RealD Inc. is hoping to raise some real money from Wall Street.

In a regulatory filing, the Beverly Hills-based 3-D company said it hopes to raise $151 million from a public stock offering as early as next week. RealD plans to offer 10.75 million shares -- 6 million from the company and 4.75 million from current shareholders -- at a price range of $13 to $15. The company said it would use its proceeds to repay a $25-million loan, make acquisitions and invest in new technology.

RealD licenses 3-D systems to theaters. Obviously, that’s been a pretty good business to be in given Hollywood’s infatuation with 3-D, fueled by the box-office success of such movies as ‘Avatar’ and ‘Alice in Wonderland.’

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Nonetheless, the company has been losing money since its founding in 2003 and reported in its filing that it posted a net loss of $39.7 million for the the year ended March 26. It blamed the losses on higher costs from marketing and investments in new technology. RealD predicted such losses would be offset by a surge in revenue due to the rapid deployment of 3-D screens by the major theater circuits.

A market leader in the industry, the company’s systems, which included adapters that fit onto digital projectors and 3-D glasses, are used in 5,966 theater screens in 51 countries.

J.P. Morgan and Piper Jaffray are the lead underwriters in the IPO.

-- Richard Verrier

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