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Care.com sets IPO price range, eyes ~$500M valuation

  • Care.com has set an IPO price range of $14-$16. After factoring options, warrants, and preferred shares, that spells a valuation range of $469M-$536M for the online home caregiver marketplace, which plans to trade under the symbol CRCM. (S-1)
  • Given Care.com's recent top-line numbers, the company may end up going public at 5x-6x trailing sales.
  • Morgan Stanley, BofA/Merrill, JPMorgan, Allen & Co., and Stifel are underwriting. Prospective IPO buyers are likely to play close attention to both Care.com's rapid growth (+81% Y/Y over the first nine months of 2013) and heavy sales/marketing spend (77% of revenue over the aforementioned timeframe).
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