In Drought-Ending IPO, LogMeIn Logs $107 Million
In the year’s first initial public offering by a venture-backed company from New England, Woburn, MA-based remote access software maker LogMeIn has raised $80 million, according to a report late Tuesday night in the Wall Street Journal. Through lead underwriters Barclays and JP Morgan Chase, the company sold 5 million shares at $16 per share—the high end of the price range it had hoped the offering would bring.
Altogether, 6.67 million shares were sold in the offering, raising $107.2 million, according to the Journal. (PE Hub’s sources put the amount slightly below that, at $106.7 million.) Of that, $27.2 million will go to individual shareholders who sold parts of their stakes, including LogMeIn CEO Michael Simon and chief technology officer Martin Anka. LogMeIn’s stock will begin trading today on the NASDAQ exchange under the ticker symbol LOGM.
It’s only the fourth time in 2009 a U.S. venture-backed company has gone public, after a four-month period at the beginning of the year with no venture-backed IPOs at all.
Whether or not the sale heralds the gradual restoration of the IPO as one of the traditional exit paths for venture investors, it’s bringing respectable returns to LogMeIn’s investors. Altogether, venture backers put $20 million into the company, in return for shares now worth a collective $155 million, according to the Journal.
Prism Venture Works, the company’s single largest shareholder, comes out of the IPO with an 18.2 percent share of the company that’s worth $62.3 million at the $16-per-share price. Polaris Venture Partners sold shares worth $7.4 million in the offering and is holding onto a 13.9 percent stake worth $47.6 million. Intel Capital’s 4.2 percent stake is now worth $14.2 million, and Integral Capital Partners sold shares worth $5 million and retained a 5.4 percent stake worth $18.4 million.
Medidata of New York, OpenTable of San Francisco, and SolarWinds of Austin, TX, are the other three venture-backed companies that risked IPOs this year.