? Boo Hoo Hoo for VCs and IPOs? |
| Tim You Tastemaking Fool, Part II ?
April 04, 2006
Tim You tastemaking fool
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. http://yahoo.reuters.com/news/NewsArticle.aspx?storyID=urn:newsml:reuters.com:20060404:MTFH39121_2006-04-04_10-18-55_N04360323&related=true&rpc=44
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.
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