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Kayak Software Seeks Up to $87.5 Million in Initial Offering

Kayak Software Corp., the online travel company, plans to raise as much as $87.5 million in its U.S. Internet initial public offering.

The Norwalk, Connecticut-based company plans to sell 3.5 million shares at $22 to $25 each, according to a regulatory filing today. The IPO is scheduled to price July 19, according to data compiled by Bloomberg. The stock will trade under the ticker KYAK on the Nasdaq Stock Market.

Kayak, which first filed to go public in November 2010, delayed its IPO roadshow in late May after Facebook shares plunged 27 percent in their first two weeks of trading, a person familiar with the situation said at the time. Facebook has since regained about half its value and U.S. stocks have rallied amid corporate earnings growth and an increase in mergers and acquisitions.

Revenue at Kayak jumped 39 percent in the first quarter to $73.3 million, from $52.7 million a year earlier. The company reported net income in the period of $4.1 million, following a $6.9 million loss in the year-earlier quarter because of a writedown related to its SideStep brand.

Kayak’s competitors in the online travel market include Google Inc. (GOOG) and Microsoft Corp., according to the filing, and both have made acquisitions to expand their businesses. The company also faces competition from startups like Hipmunk Inc.

Kayak was founded in 2004 by Daniel Stephen Hafner, the chief executive officer, and Paul English, the chief technology officer. They hold a combined 16 percent of the company’s voting power. The biggest backers are General Catalyst Partners, Sequoia Capital, Accel Partners and Oak Investment Partners.

Morgan Stanley and Deutsche Bank AG are leading the offering.

To contact the reporter on this story: Ari Levy at alevy5@bloomberg.net.

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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