Deal Flow

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

Justin Hibbard
Find local experts in:

« A snapshot of Shutterfly | Main | What part of "Vonage" don't you understand? »

July 14, 2006

Alien Tech Prices IPO at $10-$12

Justin Hibbard

Well, Tim, Alien Technology priced its IPO this week. If the deal gets done within the proposed price range--and if your bet still stands--you're going to owe someone $10 to $12 (the price of one share). Of course, the company now expects to raise a maximum of $124.2 million, which is $13.8 million less than it had originally anticipated. Although I think the deal will happen, it clearly won't be the "scorcher" I had predicted. What has changed since my prediction? One word: Vonage. The Internet phone company's tepid IPO in May threw a wet blanket over speculative concept plays like Alien, which lost $34 million on revenues of $10 million in the six months ended April 1. In other words, several quarters of positive earnings on meaningful revenue are still minimum criteria for a successful IPO in the post-bubble world. And that's probably as it should be.

01:37 PM


Trackback Pings

TrackBack URL for this entry:


Post a comment


Copyright 2000-2009, Bloomberg L.P.
Terms of Use   Privacy Notice