As the tech IPO window creaks open, contractor reviewing site Angie’s List has announced a $13 opening share price for a planned initial public offering later this month.
Evelyn Rusli of The New York Times reports that the company plans to raise approximately $114.3 million by issuing 8.79 million shares, with underwriters Bank of America Merrill Lynch keeping open the option of adding an additional 1.3 million shares, if the initial flotation is oversubscribed.
Angie’s List, which lets users review a wide variety of service providers, from landscapers to surgeons, is not a pure-play technology company. Angie’s List earns much of its money from paid search results, with contractors who wish to appear more often paying for placement.
Technology companies are once again testing the public’s appetite for their stock, beginning with the IPO of LinkedIn this past March. Social Games site Zynga has filed its S-1 and its IPO is expected before the new year. Yelp, another local reviews site for restaurants and services has also expressed its intention to go public and recently selected its underwriters.
Groupon, which became a publicly traded company on Nov. 4, listed its shares at $2o for its initial public offering. Groupon shares initially soared, hitting $28 per share on their first day, but have continued to cool. At the close of trading today, Groupon shares were trading at $24.07. LinkedIn shares, which debuted at $83 per share in May, were trading at $71.56 at the close of markets today, just as the employee lockout period comes to a close.
In the case of Groupon, Yelp, and Angie’s List, and to an extent, LinkedIn, the companies’ core products are not technological. So, while the public offering signal a return of tech stock offerings to the market, it is a bit of a mischaracterization, because none of the companies make and sell software.
Angie’s List, while not as well-known as other IPO contenders, is a 16-year-old company that raked in $38.6 million in revenues during the first six months of 2011, though the company is not yet profitable.
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