An IPO Xooming Too High
On Friday, the IPO for the cash-transfer service provider Xoom, Inc. (XOOM) soared 59% after being priced above the initial range. After reading the final prospectus, the company harkens back to the technology IPOs of the late 1990s when a stock had as much hope as hype.
The company is a global online money transfer provider, focused on helping consumers send money in a secure, fast, and cost-effective way using their mobile phone, tablet or computer. Xoom has 750,00 active customers that sent more than $3.2B to family and friends in 30 countries worldwide during 2012.
With a revenue base of $80M, Xoom follows in the footsteps of the recent ExOne (XONE) IPO (see Does The ExOne IPO Offer Any Value?) where the company was substantially smaller than companies going public over the last few years.
Read the full article at Seeking Alpha.
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