OpenTable Strength Clears Way For More IPO's (OPEN)

OpenTable, Inc. (NASDAQ: OPEN) has just opened around $25.00 on its initial public offering.  The online restaurant reservations system priced its 3 million share IPO at $20.00 per share, which was already well above its indicated price range of $12.00 to $14.00 and then was bumped to $16.00 to $18.00 per share.

The company is offering 1,572,684 shares of the common stock, and selling stockholders are offering 1,427,316 shares.

The underwriters were listed as Merrill Lynch, Allen & Company, Stifel Nicolaus, and ThinkEquity.  After a premium open, it can be assummed that the 15% option for overallotments will be exercised to make this float 3.45 million shares.

For the twelve months ended December 31, 2007 and 2008, its revenue was $41.1 million and $55.8 million, respectively.

For the twelve months ended December 31, 2007 and 2008, its subscription revenues accounted for 55% and 54% of total revenue respectively.

For the twelve months ended December 31, 2007 and 2008, the company’s reservation revenues accounted for 41% and 41% of total revenue, respectively.

For the three months ended March 31, 2008 and 2009, its subscription revenues accounted for 52% and 52% of total revenue, respectively; and its reservation revenues accounted for 44% and 43% of total revenue, respectively.

After the first five minutes of trading, OpenTable now looks to be at $26.50 and we have already seen 1.4 million shares trade hands.

This marks the first true US-based NASDAQ IPO in quite some time.  Between this and some of the other IPO’s we have seen, we’d expect to start seeing a clamoring for more deals in the underwriting hopper.

JON C. OGG
May 21, 2009