Bandwidth trading center Arbinet Holdings Inc plans to raise $115m through an IPO on Nasdaq after raising $113m in five rounds of private funding.
The New York-based company claims to be the leading electronic market for trading, routing and settling communications capacity, and has ambitions to be the leading platform where any digital goods can be traded.
Communications service providers constitute the majority of its 320 users and anonymously buy and sell voice calls and internet capacity in every country in the world. Arbinet said eight of the 10 largest carriers use its services, and said 55% of its members are in North America, 31% in Europe, and 14% in the rest of the world.
Arbinet said that during 2003, its members traded approximately 8 billion minutes of wireline, wireless, VoIP and other calls, a 60% increase over the previous year. Wireless calls represented 37% of the minutes while wireline was responsible for the remaining 63%.
As a result of rapid growth, the company is on the verge of profitability. In 2003, it narrowed its loss to $8m, down from a loss of $41.6m on revenue 45.2% higher at $33.9m. In its first quarter to March 31, the net loss was $855,000, down from a loss of $2.8m on revenue 34.7% higher at $10.1m.
The company plans further international expansion and said it plans to add to its exchange delivery points, or EDPs, in New York City, Los Angeles, London, Frankfurt, and Hong Kong, with further EDPs in Asia and Latin America.