Deal Flow

Inside the world of M&A, IPOs, and Venture Capital

Justin Hibbard
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April 04, 2006

Tim You tastemaking fool

Tim Mullaney

I have an easy job.

I just talk up an IPO and -- voila!-- they raise the deal's price range the next day.

If only it were this easy. If only it were true.

But today's news tells of a price hike for Visicu's IPO, which now is going to cost $13 to $15 a share instead of the $11 to $13 I talked about yesterday.

That means the company is looking for a market cap of about $448 million (assuming the deal prices at $14 and the underwriters led by Morgan Stanley sell their overallotment option). That doesn't change anything material about the calculations I laid out yesterday, which were based on an IPO price of $13 a share and a market cap of about $413 million.

The deal is expected to price tonight and trade tomorrow. I still think it's a solid deal; I didn't flog it because I thought you could make $2 a share on it overnight. I flogged it because I think you can make somewhere between several and many times that over time.

02:24 PM


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