July 9 Software security company Palo Alto
Networks and online travel service company Kayak Software Corp
set the expected price ranges for their initial public
offerings, prodded by a successful debut by IT software company
ServiceNow's successful IPO could pave the way for other
offerings in an otherwise sluggish global IPO market.
The company's shares soared 29 percent in their New York
Stock Exchange debut last month, reawakening a market that had
caught a chill from the European debt crisis and the aftermath
of Facebook Inc's botched trading debut.
Global IPO proceeds slid 46 percent to $59.6 billion in the
second quarter, according to Thomson Reuters data.
Palo Alto Networks on Monday said it expects to sell 6.2
million shares between $34 and $37 each. At the high end of the
expected price range, Palo Alto is expected to be valued at $2.4
For the year ended 2011, the company posted a net loss of
$12.5 million on a revenue of $118.6 million.
Demand for Palo Alto, which plays in the fast growing
enterprise software space, is expected to be strong.
"ServiceNow shows that the appetite for fast growing tech
companies in their growth cycle will be massive," said Jim
Krapfel, an analyst with Morningstar. "I expect there to be good
demand for Palo Alto."
The company expects to list its shares on the New York Stock
Exchange under the symbol "PANW". Morgan Stanley, Goldman Sachs
and Citigroup are the lead underwriters on the issue.
Kayak expects to sell 3.5 million shares between $22 and $25
each. At the high end of its expected range, Kayak is expected
to be valued at $964 million.
The company was supposed to launch its IPO earlier this
summer but postponed its plans due to Facebook's lackluster
performance, according to a source close to the situation. Kayak
faces mounting competition in the online travel sector from
companies like Expedia Inc and Travelocity.
"They don't have too many value added services and most
people would rather go directly to the airlines' websites for
the same deal which is cheaper," said Scott Sweet, managing
partner at IPO Boutique, an IPO research firm.
Kayak is backed by private equity players like General
Catalyst Partners, Sequoia Capital, Accel Funds and Oak
The company expects to lists its shares on the Nasdaq under
the symbol "KYAK". Its offering is being underwritten by Morgan
Stanley and Deutsche Bank Securities among others.
The amount of money a company says it plans to raise in its
first IPO filings is used to calculate registration fees. The
final size of the IPO could be different.