Chegg prices IPO at $12.50, shares begin trading today

|By:, SA News Editor

Chegg's (CHGG) IPO price is above a prior range of $9.50-$11.50, and gives the online textbook rental/student community site a valuation of $1.08B, or close to 4x likely 2013 sales.

Relatively moderate growth (sales rose 23% Y/Y in the first nine months of 2013) and competition from e-textbook providers appear to have tempered Chegg's valuation relative to some other recent Internet IPOs.

The company raised $187.5M by selling 15M shares. Underwriters have a 2.25M-share overallotment option.

GSV Capital (GSVC) estimates its Chegg stake was worth $14.1M at the end of Q3 (5.6% of NAV).

S-1, IPO preview