Published on Wednesday, June 6, 2012
Bloomberg is reporting that Kayak Software Corp has delayed its initial public offering following Facebook’s post-IPO tumble.
It said the online travel agent, based in Connecticut, was due to start a roadshow for the offering last week, but has changed its mind following Facebook’s poor market debut.
Morgan Stanley, the lead bank on Facebook’s initial share sale, was also due to be leading Kayak’s IPO.
Kayak initially intended to go public in November 2010 but postponed its plans in uncertain market conditions.
It posted a profit of $4.15 million in the quarter that ended March 31, compared with a loss of $6.91 million in same period the year before. Revenue rose 39% to $73.3 million.
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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.