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2 IPOs Off to Red-Hot Starts

Bazaarvoice, Proto Labs posting double-digit gains midday Friday


Only two IPOs priced this week, but they were hot! Here’s a quick look at the markets’ new publicly traded companies.

Bazaarvoice (NASDAQ:BV): The company develops cloud-based software that helps customers analyze social media like Facebook, Twitter and YouTube. The company has 737 active clients, which include large operators like Macy’s (NYSE:M), Home Depot (NYSE:HD) and Dell (NASDAQ:DELL). From 2009 to 2011, revenues surged from $22.5 million to $64.5 million.

Bazaarvoice priced its IPO at $12, which was above its $8-$10 range, and it was trading up around 40% in midday trading.

Proto Labs (NYSE:PRLB): This company makes it easy to create parts for prototyping new products. Traditionally, this has been an expensive process because of the use of high-priced labor. But Proto Labs has automated the key processes, and it now is common to turn around a part within a day — at a highly competitive price, to boot.

From 2007 to 2011, revenues grew from $35.9 million $98.9 million. The company also posted $26.9 million in income from operations last year.

Proto Labs issued 4.3 million shares at $16, which was above its $13-$15 range, and PRLB shares are up more than 71% in today’s trading.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook, All About Short Selling and All About Commodities. Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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