Palo Alto, Kayak Set Expected IPO Price Range
Software security company Palo Alto Networks and online travel service company Kayak Software set the expected price ranges for their initial public offerings, prodded by a successful debut by IT software company ServiceNow.
ServiceNow's public debut was in the spotlight as a successful IPO could pave the way for other offerings in an otherwise sluggish global IPO market.
The company's shares soared 29 percent in their New York Stock Exchange debut last month, as the IT software company reawakened a market that had cooled amid the European debt crisis and in the aftermath of Facebook'sbotched IPO.
Palo Alto Networks on Monday said it expects to sell 6.2 million shares between $34 and $37 each. At the high end of the expected price range, Palo Alto is expected to be valued at $2.4 billion.
For the year ended 2011, the company posted a net loss of $12.5 million on a revenue of $118.6 million.
The company expects to list its shares on the New York Stock Exchange under the symbol "PANW." Morgan Stanley, Goldman Sachs, and Citigroup are the lead underwriters on the issue.
Kayak expects to sell 3.5 million shares between $22 and $25 each. At the high end of its expected range, Kayak is expected to be valued at $964 million.
Kayak is backed by private-equity players like General Catalyst Partners, Sequoia Capital, Accel Funds, and Oak Investment Partners.
The company expects to lists its shares on the Nasdaq under the symbol "KYAK." Its offering is being underwritten by Morgan Stanley and Deutsche Bank Securities among others.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.