Updated: The almost moribund market for technology initial public offerings might make a comeback if Woburn, Mass.-based software maker LogMeIn has a successful debut on the public market. The company is looking to raise $107.2 million, and the deal will be priced this coming Tuesday. The company is offering a total of 6.7 million shares expected to be priced in the range of $14 to $16 a share. It will trade under the ticker symbol “LOGM.”
LogMeIn makes software that allows folks to access their computers over the Internet remotely. It competes with Citrix (GotomyPC), Microsoft (s MSFT) and Cisco Systems’ WebEx (s CSCO). The company had sales of $51.7 million but lost $7.75 million in 2008. During the first quarter of 2009, LogMeIn had sales of $17.2 million and a profit of $1.5 million. John Fitzgibbon, a longtime IPO analyst and founder of IPOScoop, told The Wall Street Journal that this is the IPO that “should blow the socks off people.”
Update: One of the reasons why I think this is a good proxy (and a good IPO is) because as a company it represent some of the current technology and consumer trends. Distributed and mobile work forces is prompting companies to look at remote access and collaboration tools more proactively. It is a trend that is only going to increase as wireless broadband becomes more pervasive. Of course, LogMeIn as a company would have to show that it can do much better than the most recent results — but as I said: opportunity exists. (Hopefully this answers the questions raised by some of the readers in comments below.)
This would be the second technology IPO in as many months and may have unintended consequences. OpenTable, another start-up, went public in May 2009. A LogMeIn offering could result in more technology mergers and acquisitions. The possibility of more IPOs may drive up prices for likely buyout candidates, giving buyers a much-needed impetus to loosen their purse strings and snap up likely candidates.
Related Post: Tech IPOs Are Back — but Only for Those That Don’t Need Cash.
6 thoughts on “Next Hot Tech IPO: LogMeIn”
This doesn’t strike me as a hot IPO. LogMeIn is an average player in a crowded market with modest revenues. I could see a pop due to pent up demand but then a trend back to the offering price or below.
I totally agree with JD on this issue. Coincidently, the domain name LOGMEOFF.COM is for sale and can be yours – Make An Offer!
I agree with jd. This is a very crowded market and the barrier to entry is not very high. Google or other big players can get in and offer free service.
hot IPO …looks more damp squid ..
It has some nice revenues, but the lack of a strong series of quarterly profits would keep me away.
Why are the #s in the S-1 are only 07 and I fail to see how a money losing compnay that has Cisco as a main competitor, tough to see a hot IPO here