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IPO News

2/22/10 Analyst IPO Blog

Reply!, which operates an auction marketplace that facilitates online lead generation and locally-targeted marketing, filed on Monday with the SEC to raise up to $60 million in an initial public offering. The San Ramon, CA-based company, in which Scale Venture Partners owns a 21% stake, was founded in 2001 and booked $34 million in sales in 2009, up 47% over the prior year. Reply! plans to list on the NASDAQ under the symbol RPLY. Jefferies and Piper Jaffray are the lead underwriters on the deal, for which pricing terms and timing were not disclosed.

Reply! is the third online marketing company to file for an IPO in the last four months, following the November 2009 filing of QuinStreet (QNST) and the December 2009 filing ReachLocal (RLOC). QuinStreet, which is the largest of the three with close to $300 million in sales, successfully completed a $150 million IPO earlier this month, but was forced to price almost 17% below the midpoint of its proposed range. Trading in the Foster City, CA-based company has been lackluster, with the stock currenty sitting 9% below its $15 offer price.

Although smaller in size than QuinStreet, both Reply! and ReachLocal are growing briskly and generating positive cash flow. In the first nine months of 2009, ReachLocal's total reveneue grew 38% to $143 million, while its cash flow from operations increased 28% to $12 million.