Chegg sets IPO price range of $9.50-$11.50


Chegg's (CHGG) price range translates into a valuation range of $820M-$992M, or 3.8x-4.7x 2012 sales. The online textbook rental/student community site is planning to sell 14.4M new shares, and 600K on behalf of existing shareholders. (S-1)

Chegg's relatively subdued valuation (as compared with some other recent tech IPOs) might reflect concerns about ongoing losses and e-book-related competition from Amazon, Google, and Apple. Revenue for the first nine months of 2013 totaled $178.5M (+23% Y/Y), and net loss $50.4M.

GSV Capital (GSVC +0.7%) owns a Chegg stake that was valued at $14M (5.6% of the firm's NAV) at the end of Q2.

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