Online money transfer service Xoom Corp is preparing for an initial public offering, becoming the latest company to take advantage of a new U.S. law that makes it easier for startups to go public, according to two sources familiar with the situation.
San Francisco-based Xoom has hired Goldman Sachs Group Inc as its lead underwriter and has already filed confidentially with the U.S. Securities and Exchange Commission, the sources said.
The IPO is likely to occur in early fall, one source said. The size of the planned offering and financials of the company could not be learned.
Xoom declined to comment. Goldman Sachs could not be reached for comment.
Xoom allows customers to send money from its website to friends and family without the need for a bank account. The company, founded in 2001, competes with services like Western Union Co.
In 2011, Xoom sent $1.7 billion to 30 countries around the world. The company is an official sponsor of the Peruvian Olympic team in the 2012 London Olympic Games.
Xoom's investors include venture capital firms Sequoia Capital, New Enterprise Associates, SVB Capital and Fidelity Ventures. Keith Rabois, a PayPal veteran who is now the chief operating officer of payments company Square, is a board member.
With less than $1 billion in revenue, Xoom is taking advantage of the Jobs Act in going public. Under the law, such companies are allowed to file their registration statements confidentially.
The SEC has said that as of the beginning of June, 30 to 32 companies had taken advantage of the Jobs Act.
These include Silicon Valley business software company Workday Inc, British soccer club Manchester United Ltd and online legal document preparation service LegalZoom.com .
Companies must make their S-1 registration statements available to the public at least 21 days before their marketing road shows.
This article is copyrighted by Reuters
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