What's a reasonable company share price in this situation?

October 26, 2010 11:21 AM

What is a good expected share price in the U.S. initial public offering of Velti? It's unclear how the value of the overseas parent company will relate to shares in the U.S. Asking for a friend with possibly an immediate opportunity to obtain some equity.

They're listed on the London Stock Exchange.

They are filing for a US based IPO this year:
http://www.mobilemarketingwatch.com/velti-files-for-200m-ipo-to-advance-mobile-marketing-technology-6589/

Their SEC F-1

The SEC filing has this possibly useful information:

The table above excludes, as of December 31, 2009:

• 970,183 ordinary shares issuable upon the exercise of share
options outstanding with a weighted average exercise price of £1.63
per share;

• 2,152,461 ordinary shares issuable pursuant to deferred
share awards subject to vesting restrictions;

• 887,139 ordinary shares notionally reserved for future
grants under our deferred share awards plan; and

• 129,817 ordinary shares notionally reserved for future
grants under our share option plans.

Also possibly relevant, say they their outstanding share options as of December 31, 2009 had a weighted average exercise price of £1.63 per share. In US dollars, that equates to $2.57 per share. Is that a reasonable guess for the US shares?

posted by exogenous to Work & Money (1 answer total)

No one with any information about the pricing of this IPO would respond here.

That having been said, the 1.63 per share sounds like the price at which a tranche of equity had previously been raised and has nothing to do with the price at which they would raise capital on the public markets.
posted by dfriedman at 12:13 PM on October 26, 2010