Kayak Files For $100 Million IPO At $25 Per Share
Kayak.com, the hotel and flight search engine company, has filed for a $100 million IPO with a trading range of between $22 to $25 on the Nasdaq exchange. Kayak will trade under the symbol “KYAK.” Kayak will offer four million shares and will raise a maximum of $100.6 million, which is twice as much as their initial filing.
In terms of Kayak’s finances, Kayak made $4.15 million profit on sales of $73.3 million. This is a per-share earnings of 17 cents (11 cents on a diluted basis). In the same quarter of 2011, Kayak had a $6.9 million loss on $52.6 million in sales.
In the quarter ahead, Kayak expects to hit sales of $74.5 million to $76 million., which is growth of 31-34%. They expect to earn between $13 and $14 million on an operating basis, which would amount to growth of between 133 and 151%.
Kayak first filed their S-1 for an IPO with the U.S. SEC 21 months ago. Between now and then, Kayak faced intense rivalry with Google since they acquired travel software company ITA for $700 million. When several errors happened on the Nasdaq with Facebook’s IPO, Kayak delayed once again.
Kayak raised $223 million across four rounds of venture capital. In one of the rounds, the company raised $196 million from Sequoia Capital, General Catalyst Partners, and Accel Partners in 2007. Most of the proceeds from that venture capital round was used to acquire SideStep for $200 million in cash and stock. AOL contributed to Kayak’s Series A in 2004 and Series B that same year, but ended up selling off their equity for $19 million in 2010.
The underwriting is being led by Morgan Stanley and Deutsche Bank Securities. Piper Jaffray, Stifel Nicolaus, and Pacific Crest are participating as additional underwriters.
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry