Deals

CafePress at $19 a share, could pop as high as $26 on opening day

Thirteen year-old do-it-yourself printing service CafePress has priced shares higher than anticipated at $19, an underwriter said on the eve of the company’s public debut.

CafePress, a San Mateo, Calif-based company best-known for its popular custom t-shirt printing business, will start trading Thursday on the Nasdaq under the symbol “PRSS” and is offering 4.5 million common stock shares (2 million shares from investors) on opening day. At $19 a share, the company will raise $85.5 million in the offering.

Above: CafePress infographic. Click to enlarge.

In its prospectus, CafePress detailed that it has more than 15 million members and an expansive catalog of more than 320 million different products. The company made $75 million in gross profit from $175.5 million in net revenue in 2011. The 2011 revenue figure amounts to 37 percent year-over-year growth.

“Overall we think it’s a good buy at $19,” financial analysis company PrivCo CEO Sam Hamadeh explained to VentureBeat. “We wouldn’t be surprised by a first day pop — if we had to anchor a number, we’d predict a first day pop to $26 before settling around $23, for a healthy pop.”

CafePress will win favor on Wall Street, Hamadeh said, because of solid annual revenue and impressive year-over-year revenue growth. “It’s one of the stronger IPOs coming online so far in 2012,” Hamadeh added.

CafePress has raised $15.5 million in funding to date. The service competes with a slew of long-running online printing companies such as Zazzle and slightly overlaps in purpose with a crop of young upstarts looking to capitalize on printing mobile photos.

Update: CafePress opened at $21.10 a share Thursday morning. The stock shot up to $22.68 but was hovering around $20 a share by the late afternoon.