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Fleetmatics (FLTX) Shares Soar after Public Debut

 October 05, 2012 01:40 PM
 

(By Balachander) Fleetmatics (NYSE:FLTX) has priced its initial public offering of around 7.81 million shares at $17.00 apiece, the high end of its estimated range. Shares of the provider of fleet management services jumped as much as 36 percent on their public debut.

Fleetmatics bright debut comes after lackluster performances by others in the IPO market this week.

Ireland-based Fleetmatics said is it offering 6.25 million shares and selling stockholders are offering roughly 1.56 millon shares.

The company expected the IPO price to be between $15.00 and $17.00 per share.

Fleetmatics provides its fleet management services for small and medium-sized businesses delivered as software-as-a-service (SaaS). It offers web-based and mobile application solutions that provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage and other insights into their mobile workforce.

As of June 30, 2012, the company had more than 16,000 customers, according to a recent regulatory filing.

For the six months ended June 30, 2012, Fleetmatics reported a net loss of $400,000 on subscription revenue of $58.4 million.

The company posted net income of $2.9 million on revenue of $92.3 million for the year ended December 31, 2011.

Barclays (BCS) and BofA Merrill Lynch (BAC) are acting as joint book-running managers for the offering. RBC Capital Markets, Stifel Nicolaus Weisel, and William Blair are acting as co-managers.

In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to 1.17 million additional shares.

LifeLock Inc. (NYSE: LOCK), a provider of identity theft protection services, priced its initial public offering of 15.70 million shares at $9.00 apiece, below the low end of its expected price range. Shares opened 7 percent below the offering price yesterday and is down 8.4 percent on Friday.

Dave & Buster's Entertainment, a dining and entertainment company, withdrew its offering this week due to a volatile market.


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