Tags: kayak | ipo | facebook

Kayak Said to Postpone IPO Plans on Facebook Tumble

Wednesday, 30 May 2012 03:10 PM EDT

Kayak Software Corp. is delaying its initial public offering following Facebook Inc.’s post-IPO tumble, according to a person close to the situation.

The Norwalk, Connecticut-based online-travel service has postponed the roadshow for the offering, which was scheduled to start last week, said the person, who declined to be identified because the information is private. Morgan Stanley, the lead bank on Facebook’s initial share sale, also was hired to lead Kayak’s IPO.

Kayak would have been the first U.S. Internet offering since Facebook went public in the biggest technology IPO on record this month. The social network dropped 24 percent through Tuesday since its market debut, extending its losses in the worst-performing large IPO in the past decade. Investors are pummeling the stock amid questions about Facebook’s growth and how underwriters managed the share sale.

ServiceNow Inc., an IT cloud-computing services company, and Palo Alto Networks Inc., an Internet security company, both planning IPOs led by Morgan Stanley, are on track to go public, said people familiar with the situation. Pen Pendleton, a spokesman for Morgan Stanley, declined to comment.

Mike Haro, a spokesman with Palo Alto Networks, and Rhett Glauser, a spokesman with ServiceNow, didn’t immediately respond to requests for comment. Jessica Casano-Antonellis, a spokeswoman for Kayak, declined to comment.

Slowing Growth

Facebook’s investors are concerned about the company’s prospects after first-quarter profit decreased on slowing sales growth, and some shareholders have filed lawsuits alleging that the biggest social network and its underwriters overpriced the stock at $38 a share. At that price, Facebook had a higher price-to-earnings multiple than 99 percent of the Standard & Poor’s 500 Index.

Facebook closed at $28.84 yesterday, slipping below $30 for the first time. The stock fell 2.5 percent to $28.13 as of 2:27 p.m. New York time Wednesday.

Kayak first filed to go public in November 2010 and put its plans on hold earlier this year because of choppy market conditions. The company said this month it posted a profit of $4.15 million in the quarter that ended March 31, compared with a loss of $6.91 million in the year-earlier period. Revenue rose 39 percent to $73.3 million.

© Copyright 2024 Bloomberg News. All rights reserved.

Wednesday, 30 May 2012 03:10 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved
© Newsmax Media, Inc.
All Rights Reserved