21st July 2012  Kayak and Palo Alto Open Strong, Fender Withdraws Offer.

Earlier this month Geek$tocks looked at the first major IPOs since Facebook(FB) hit the markets in May. Payday has come for two of those companies while the other has withdrawn its offer.


Fender Musical Instruments pulled out of its planed share offering Thursday night citing poor market conditions and the weak economy in Europe where it would be expecting to increase sales. Fender was expected sell 10.7 million shares, equal to 40% of the total outstanding, at a price range of $13-$15. Interest in the shares by institutional investors waned early in the week and Fender CEO Larry Thomas made a statement Friday morning following the withdrawal stating the company did "not support completing an initial public offering...at this time".


Things fared much better for Kayak Software Corp (KYAK) which raised $91 million on its first day of trading on Friday. 3.5 million shares in the company, 10% of the total outstanding, went for $26, slightly above the guided offering range of $22-$25. Shares quickly jumped above $30, reaching a high of $35 and closed the day at $33.18, 27% over its IPO price.


Palo Alto Networks (PANW) also jumped over 25%, pricing at $42 and closing at $53.13. Strong demand saw an adjustment in price from the $38-$40 range and caused share's to open trading at $55.15 and reaching a high of $58.35 before levelling in the $55-$56 region for much of the day. Towards close however the share price began to $53.



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