Only five U.S. startup companies have gone public this year, down from 86 in 2007, according to data from the National Venture Capital Association, as related by Bloomberg.
Supply, then, is so thin, that today it drove a 25% stock price appreciation on the first day of one of those IPOs.
LogMeIn.com, ticker LOGM, was incorporated in 2003 in Bermuda, re-incorporated in Deleware in 2004 under the name 3am Labs, and in 2006 changed to the present name, according to the company’s amended S1, filed with the SEC on Friday. The underwriters for Wednesday’s offering were JP Morgan (NYSE:JPM), Barclay’s Capital, Thomas Weisel, Piper Jaffray (NYSE:PJC), and RBC Capital Markets. The company and its venture capital backers, including Polaris Venture Partners, Prism Venture Partners, and Integral Capital Partners, offered 5 million shares, which would make the sale at $16 per share equivalent to an $80 million haul for the company and its bankers.
The company hosts software on its computer facilities that can be used by individuals and corporations to remotely control the screen on a PC. The company creates versions of its program that can be used on Apple’s (NASDAQ:AAPL) iPhone or Research in Motion’s (RIMM) BlackBerry, which may account for the excitement that today boosted its share from the $16 offer to a close of $20.02, with the shares rising another 23 cents after hours.
LogMeIn made $17.2 million in sales in the three months ending March, almost double its sales a year earlier, and had net income of $2 million, and $51.7 million in the 12 months ended in December. The company had $27.1 million in cash and equivalents on its books at the end of March.