Kayak Sets Initial Range for IPO
Online travel company Kayak Software said that it expects to sell 3.5 million shares between $22 and $25 apiece in its initial public offering. The company is backed by private equity investors, including General Catalyst Partners, Oak Investment Partners, Accel Funds, and Sequoia Capital. At the high end of its pricing range, the company could be valued at $964 million.
Technology IPOs have largely not fared well over the last year, with companies such as Facebook (NASDAQ: FB), Groupon (NASDAQ: GRPN), and Zynga (NASDAQ: ZNGA) all seeing their share prices drop sharply from their IPO price.
Alternatively, however, online travel companies such as Expedia (NASDAQ: EXPE) and its spin-off, TripAdvisor (NASDAQ: TRIP) have seen their share prices soar in 2012. EXPE shares have jumped more than 63% on the year and TRIP is up more than 81% during the same time period.
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