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 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.