Kayak helps consumers compare prices on airlines and vacation packages online. It priced its initial public offering at $26, above the $22 to $25 range it intended to open at. The Norwalk, Conn.-based company is selling 3.5 million shares -- less than 10% of its total shares -- in a $91 million offering.
In its last fiscal year (2011), Kayak brought in $224.5 million in revenue, up 32% from fiscal 2010. Net income grew 21% in that period to $9.7 million.
Kayak competes in a crowded space. A number of its competitors are already trading publicly, including Orbitz, Expedia, Google and Microsoft Bing. Another competitor, Travelocity, is held privately by Sabre Holdings Corporation.
Recently, Google acquired ITA Software, which powers about two-fifths of Kayak's searches, for $700 million. There's a concern that when their contract expires in December 2013, Kayak will be unable to form another agreement with the provider, or perhaps only one on less favorable terms.
Kayak filed to go public in November 2010. It originally planned to go public after Facebook's IPO in May, but plans were reportedly put on hold after Facebook's tumultuous opening on the stock exchange. Facebook shares were trading around $29 Friday afternoon, down about a quarter of its initial offer price of $38.
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