Constant Contact IPO a Roaring Success
In a positive step forward for the technology capital markets, small business email software provider, Constant Contact (CTCT), saw its IPO on Wed. Oct. 3 jump to a 79% gain on its first day of trading.
Constant Contact shares closed at $27.64. The company, based in Waltham, Mass., raised $93.3 million in the offering, selling 5.8 million shares at $16 apiece, surpassing the $12 to $14 expected range of the stock. Constant Contact has 27 million outstanding shares, giving it a market capitalization of more than $800 million.
This surely opens the door for some other ESPs to move closer to their own IPOs. Who is next will be interesting fodder for the email industry as well as a big step in moving email more into the mainstream business and finance world.
Some stories on the IPO:
Constant Contact’s I.P.O. May Bode Well For Tech Offerings
Constant Contact shares soar in debut
You can also read about some highlights from their filing in my earlier post.
posted by C.E.O. - BrightWave Marketing and EmailStatCenter.com, Author - The Truth About Email Marketing, Columnist, Speaker at 8:51 AM
3 Comments:
Wow - thanks for keeping an eye on this for us Simms. My initial reaction is to wonder what they're going to do with all that cash and how will their spending impact the competition...could be fun!
Thursday, October 4, 2007 at 3:05:00 PM EST
Mark - my prediction is several acquistions, including at least one major deal that will swallow a high profile competitor. Also, expect more mainstream marketing campaigns and for them to address 2 weaknesses: technology/platform infrastructure and customer service. Also, if they are really smart, a major sponsorship on EmailStatCenter.com!
Thursday, October 4, 2007 at 3:35:00 PM EST
I know another site they could sponsor, too. In fact, less than 1% of their newfound cash could buy it outright :-)
If they start a big marketing push, it will certainly place pressure on others. I've already noticed a few ESPs beginning to hire more marketing folk as competition heats up.
Friday, October 5, 2007 at 4:24:00 AM EST
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