NEW YORK - Digital Domain, a visual effects and animation company affiliated with Hollywood film director Michael Bay, expects to raise $68.8 million from its initial public offering, according to a Securities and Exchange Commission filing Monday.
The Venice, Calif.-based company expects the IPO to total 6 million shares and price between $12 and $14 per share.
The estimated net proceeds, which exclude fees and expenses, assume an offering price of $13 per share. Based on the estimated price range, the company would have a market capitalization of $229.9 million to $268.2 million.
Digital Domain creates digital imagery for feature films, television advertising, interactive visual media and the video game industry.
Some of the feature films on which the company has worked have received Academy Awards and nominations for "Best Visual Effects." The company has worked on such films as "Titanic," "Apollo 13," "Pirates of the Caribbean: At World's End," and "Transformers."
Digital Domain's work also includes effects in television commercials for Adidas, American Express, BMW, Nike, Pepsi, Sony and other brands.
Digital Domain is in talks with Warner Bros. Pictures to potentially jointly develop an animated feature film and video game using the common architecture of a video game engine.
The company plans to use proceeds from the IPO to repay debt and to expand its technology development and licensing program. Proceeds will also be used for general corporate purposes, including working capital and capital expenditures.
Digital Domain Co-chairman Michael Bay has directed and produced "Transformers," "Armageddon," among others. He has also filmed commercials for Nike, Coca-Cola, and Levi's. The company said Bay has indicated that he plans to work with the company to develop film or video game projects, but is under no contractual obligation to do.
President and Chief Executive Mark Miller is a former executive of Lucasfilm Ltd. and Industrial Light and Magic, a visual effects company.
In 2007, Digital Domain reported an adjusted loss of $20.2 million on revenue of $78.8 million.
Thomas Weisel Partners and Oppenheimer & Co. are serving as the IPO's lead underwriters. William Blair & Co., Merriman Curhan Ford & Co. and GunnAllen Financial Inc. are also underwriting the offering.
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The underwriters have an option to buy up to 900,000 additional shares to cover any overallotments.
The company plans to list its shares on the Nasdaq Global Market under the symbol "DTWO."
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