Luxembourg-based Internet phone service provider, Skype is to raise $100 million through its initial public offering (IPO) in the U. S.

The company offering video calling and instant messaging communications has not yet disclosed the number and price range of the share.

The money raised through IPO will be used for the expansion of its services, for the growth strategy in its SkypeOut service and also to enhance its marketing and advertising revenue.

Skype has posted an increase of 25 percent in the net revenue, from $324.8 million in the same period in 2009 to $406.1 million in the first six months of 2010.

The net income declined from $22.5 million to $13.1 million.

Skype was launched in 2003 and was acquired by eBay for $2.6 billion in 2005.

Last year, eBay has sold 70 percent stake of the company.

Around 560 million users are registered with Skype as on June 30, the figures have increased by 41 from previous year.

Skype will issue ordinary shares in the form of American depositary shares on the Nasdaq Global Select Market.

Goldman Sachs, J. P. Morgan and Morgan Stanley act as underwriters.