LifeLock Inc. (NYSE: LOCK) is looking as though it will go down quite different from its indications just last week. What was supposed to be a hot initial public offering has gone from hot to snot. The identity protection service has a subscription model and it has been advertising heavily of late to increase its presence and ultimately to increase its subscriber base.
Today’s initial public offering of 15.7 million shares priced at $9.00 per share. Unfortunately, the deal’s indicated price range just last week was actually up in a range of $9.50 to $11.50 per share.
The underwriting was brought by Goldman Sachs, BofA Merrill Lynch, and Deutsche Bank Securities as the book running managers; co-managers were listed as RBC Capital Markets, Canaccord Genuity, and Needham & Company.
LifeLock shares are trading under the $9.00 per share price around $8.70, and as of 10:45 a.m. EST we have seen more than 8 million shares trade hands already.
While the entire point here sounds negative, we would pay attention to this company. By having a subscription model, it has scale as long as Joe Public remains concerned with identity theft and credit theft. It is very possible that the current disappointment represents an attractive entry point for speculators that look at newly public companies.
JON C. OGG