Kayak sets IPO price at $26 a share
The online travel service readies itself for Nasdaq trading this week -- setting its IPO price higher than expected, at $26 per share.
Facebook's teeter-totter on the Nasdaq has caused some to wonder whether it's a good idea for Internet companies to go public. After a little back-and-forth and a bit of careful consideration, the online travel agency Kayak has decided to take the plunge.
Trading is scheduled to begin on the Nasdaq tomorrow, with the company's initial public offering set at $26 per share -- above the expected range of $22 to $25, according to CNBC. Kayak aims to sell 3.5 million shares, it said in its regulatory filing last week. At $26, that would mean raising $91 million.
Kayak first filed to go public in 2010 but put its IPO on hold in May after company executives got cold feet when Facebook's share price plunged in the first couple of weeks after its offering.
According to CNBC, the final size of Kayak's IPO could change, since first filings are typically used to calculate registration fees. Kayak's final IPO price could serve as a weather vane of sorts for the investment community's feeling toward Internet stocks in general.
Kayak is backed by several private-equity firms, including General Catalyst Partners, Sequoia Capital, and Accel Funds; and Morgan Stanley and Deutsche Bank Securities are leading the stock offering. Shares will trade on the Nasdaq under the ticker KYAK.
Last year, Kayak generated $224.5 million in revenue, up from the $170.7 million in 2010. The company was able to muster a profit of $9.7 million in 2011.