CafePress IPO Hits ‘Hot’ (PRSS)

The offering was for only 4.5 million shares at a price of $19.00.  We had a price range of $16.00 to $18.00 and the demand was high enough for a premium pricing.  Of the offering, 2.5 million shares are being sold by the company and 2 million shares are coming out from selling shareholders.  The company will have 16,978,700 shares outstanding after this offering.

J.P. Morgan and Jefferies acted as the joint book-runners for the offering; Cowen and Company, Janney Montgomery Scott, and Raymond James & Associates are the co-managers.  Sequoia Capital owns about 20% of the current stock and that will still be about 17% or so after the offering is completed.  Selling stockholders have granted the underwriters a 30-day overallotment option to purchase up to 675,000 additional shares of common stock.

The company is profitable with $3.6 million in net profit and sales in 2011 were up 37% to $175.5 million.

JON C. OGG