Skype Plans $100 Million IPO

Skype is planning to raise $100 million from an initial public offering in the US, as a part of its strategy to expand its user base and revenue.

The company, which offers internet telephony, video conferencing and instant messaging services, filed an application with the US Securities and Exchange Commission, stating that the money raised by the IPO will be spent on expanding its free and paid user base, enhancing the revenue from advertising and marketing and offering more services to its business users.

Skype, which was founded in 2003, said that it will issue shares in the form of an American Depositary Share on Nasdaq.

The company has appointed Goldman Sachs, J.P. Morgan and Morgan Stanley as underwriters.

A major chunk of the company's revenue comes from its Skype Out service, which allows users to make calls on fixed landlines and mobile phones which are not on Skype's network.

Some of the money raised by the IPO will be invested in developing and expanding this service.