HomeAway’s market cap topped US$3 billion yesterday as the online vacation rentals company began trading on the NASDAQ.
The Wall Street Journal reports that shares closed at $40.21 each, up 48.9 percent from HomeAway’s initial public offering price of $27.
HomeAway raised raised $216 million in the offering, but CEO Brian Sharples told techcrunch.com that this IPO “was less about the money and more about the marketing and branding event.”
David Menlow, president of IPOfinancial.com, told reuters.com that his response to HomeAway’s first day of trading was “utter shock.”
“We weren’t too impressed with the HomeAway offering in the first place, so it is difficult to reconcile with the fact that it got this response,” Menlow is quoted as saying.
Sharples discussed the response to the IPO and his future plans for HomeAway in this interview with The Washington Post.
In a recent filing, HomeAway revealed that it in 2010 and in the three months ended March 31, it generated revenue of $167.9 million and $52.0 million, respectively, representing year-over-year growth of 39.6 percent and 43.9 percent.
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