Recent IPO @$19. 50 percent discounted now @$8.00!
March 29, 2012, 12:23 PM
Another IPO Rally: CafePress Jumps After Opening
By Lynn Cowan
The week for IPO news keeps getting better.
Everett Collection
An e-commerce company that allows consumers to customize everything from T-shirts to water bottles rose in early trading Thursday, with shares of CafePress Inc.’s IPO up 13% on its first trade.
The company’s stock opened at $21.50 a share on the Nasdaq, up from its initial public offering price of $19, and was recently changing hands at $22.01, up 15.8%. A total of 4.5 million shares were sold at a price above its expected $16 to $18 range. The stock symbol is PRSS.
CafePress follows Millennial Media Inc. out of the gate today, after that stock doubled in its early trading and appears on pace for the best first-day performance since LinkedIn last May. It also comes close on the heels of Annie’s Inc., which rose 89% yesterday.
Based in San Mateo, Calif., CafePress is best known by its flagship website, CafePress.com, where individuals and businesses can personalize a range of products, including clothing, posters, and stationery, whether as a single coffee mug with a family photo or thousands of baseball caps sporting a slogan.
Individual artists and branded content licensers also use CafePress to sell their designs, for which the company pays royalties.
In 2011, CafePress’s net revenue rose 37% to $176 million, and net income rose 33% to $3.6 million, compared to 2010.
The company warns that its business is seasonal, with first quarter revenues generally substantially lower than the fourth quarter. The company realizes a significant portion of its net revenues and operating cash flow in the final two months of each year due to holiday shopping.
CafePress’s IPO was managed by JPMorgan and Jefferies Group.
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