Organic raises IPO share price

Internet services firm Organic today raised the share price range for its initial public offering, according to a filing with the Securities and Exchange Commission.

The San Francisco-based company says it plans to offer 5.5 million shares at $18 to $20 per share, up from the range of $12 to $14 it announced last month. It seeks to raise $105 million, a significant increase over the $72 million it sought under the IPO's initial terms.

Organic builds Web sites and helps companies with marketing and brand building. The company competes in a $100 billion Internet and technology services industry that includes giants such as EDS, CSC and IBM Global Services, along with smaller firms Agency.com, iXL, Scient, Viant, Razorfish and Luminant.

Some analysts say Organic has the potential to enjoy a positive stock run as its counterparts have in recent months. Internet services firms have experienced a strong demand for their services as more companies move their businesses online.

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The seven-year-old firm has landed more than 250 clients, including DaimlerChrysler, Tommy Hilfiger, Blockbuster, Washington Mutual, Barnes & Noble and Compaq. Led by chief executive Jonathan Nelson, the firm has opened offices in Detroit, Chicago, London, New York, Singapore and San Paolo.

After the offering, Organic Holdings will own 64.9 percent of Organic's outstanding common stock, and giant holding company Omnicom Group will own 24.7 percent of the company.

Organic announced its plans to go public in November and will trade under the ticker symbol "OGNC" on the Nasdaq this week.