Groupon restates Q4 earnings and drops 6% after hours

(Crain's) — Groupon Inc. restated its fourth-quarter earnings today and disclosed in its annual report that auditors issued a statement that the company had material weakness in its internal controls.

The company said the revisions didn't change its cash flow.

Groupon's stock fell $1.23, or 6.7 percent, to $17.15 in after-hours trading.

It said the revision, which reduced fourth-quarter operating income by $30 million, was caused by the need for higher reserves for deals with higher prices that have higher refund rates than its typical daily deals.

Groupon now says it lost $65.4 million in the fourth quarter, compared with its original loss of $42.7 million. Its loss from operations was unchanged at $15 million.

"We remain confident in the fundamentals of our business, as our performance continues to highlight the value that we provide to customers and merchants," said Jason Child, Chicago-based Groupon's chief financial officer.

Groupon also issued a first-quarter forecast for revenue of $510 million to $550 million, slightly below analyst forecasts of $526 million to $550 million. The company expects income from operations of $15 million to $35 million.

Today's restatement is the latest accounting problem for Groupon, which had to revise its financials during the runup to its IPO last fall.

The company's use of an unconventional profit measure and an aggressive definition of accounting for revenue — including the amount of its daily deals shared with merchants — drew fire from the Securities and Exchange Commission and were changed before the company went public.

** chart at close **

Enphase Energy (ENPH) started trading on the NASDAQ

Enphase Energy (ENPH), a high technology company whose microinverter system serves solar energy markets, visited the NASDAQ MarketSite in Times Square in celebration of its initial public offering (IPO), which occurred today, March 30, 2012, on The NASDAQ Stock Market.

GasLog (GLOG) began trading on the NYSE on 30 March 2012

• At the time of its initial public offering, GasLog’s owned fleet consisted of ten LNG carriers, including eight newbuildings on order.

Annie's (BNNY) started trading on the NYSE on March 28, 2012

Annie's, Inc. announced the pricing of its initial public offering of 5.0 million shares of common stock at a price to the public of $19.00 per share. The common stock began trading on the New York Stock Exchange on March 28, 2012 under the ticker symbol "BNNY."

Annie's Chief Executive Officer John Foraker and Chairman Molly Ashby ring the opening bell at the New York Stock Exchange on April 4, 2012 in New York City

Organic macaroni & cheese maker Annie's is said to be the hottest IPO in a busy week with 10 companies expected to go public.

A total of 950,000 shares are being offered by Annie's and 4,050,000 shares are being offered by selling stockholders. In addition, certain selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 750,000 shares to cover over-allotments, if any. Annie's will not receive any proceeds from the sale of shares by the selling stockholders.

Annie's expects to receive net proceeds, after deducting the underwriting discount and estimated offering expenses payable by Annie's, of approximately $11.6 million. Annie's intends to use the net proceeds to pay $1.3 million in connection with the termination of its advisory services agreement and repay a portion of its indebtedness under its credit facility.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are acting as joint book-running managers, with William Blair & Company, L.L.C.; RBC Capital Markets, LLC; Stifel, Nicolaus & Company, Incorporated; and Canaccord Genuity Inc. acting as co-managers for the offering.

The offering of these securities will be made only by means of a prospectus, copies of which may be obtained from Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, by telephone at +1 (800) 221-1037 or by email at newyork.prospectus@credit-suisse.com; or from J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by telephone at +1 (866) 803-9204.

A registration statement relating to these securities has been filed with, and declared effective by, the U.S. Securities and Exchange Commission. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About Annie's
Annie's, Inc. is a natural and organic food company that makes great-tasting products in mainstream categories. Annie's products are made without the artificial flavors, synthetic colors and preservatives regularly used in many conventional packaged foods. Today, Annie's offers over 125 products, which are present in over 25,000 retail locations in the United States and Canada. Founded in 1989, Annie's is committed to operating in a socially responsible and environmentally sustainable manner.

Allison Transmission Holdings (NYSE:ALSN) started trading on March 15

Description
Allison Transmission Holdings, Inc. (Allison Holdings) is engaged in manufacturing of fully-automatic transmissions for medium- and heavy-duty commercial vehicles, medium- and heavy-tactical the United States military vehicles and hybrid-propulsion systems for transit buses. Allison transmissions are used in a range of applications, including on-highway trucks, including distribution, refuse, construction, fire and emergency; buses, including school and transit; motorhomes; off-highway vehicles and equipment, including energy and mining, and military vehicles, including wheeled and tracked. It sells its transmissions globally for use in medium- and heavy-duty on-highway commercial vehicles, off-highway vehicles and equipment and military vehicles. In addition to the sale of transmissions, it also sells branded replacement parts, support equipment and other products to service the installed base of vehicles utilizing its transmissions.

• Sector: Consumer Cyclical 
• Industry: Auto and Truck Parts

Address
One Allison Way
INDIANAPOLIS, IN 46222
United States

IPOs this week (26 March 2012): 10 companies scheduled

The following companies are scheduled to IPO this week:

1. Annie's (BNNY), which is a leading organic and natural packaged food company known for its mac-n-cheese, plans to raise $75 million by offering 5.0 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Annie's would command a market value of $263 million. Annie's, which was founded in 1989, booked $135 million in sales over the last 12 months. The Berkeley, CA-based company plans to list on the NYSE under the symbol BNNY. Credit Suisse and J.P. Morgan are the joint bookrunners on the deal.
2. CafePress (CPRS), which has e-commerce sites where customers create, buy and sell personalized products, plans to raise $77 million by offering 4.5 million shares at a price range of $16.00 to $18.00. At the midpoint of the proposed range, CafePress would command a market value of $304 million. CafePress, which was founded in 1999, booked $175 million in sales over the last 12 months. The San Mateo, CA-based company plans to list on the NASDAQ under the symbol CPRS. J.P. Morgan and Jefferies & Co. are the joint bookrunners on the deal.
3. Enphase Energy (ENPH), which is a leading provider of microinverter solutions for the solar industry, plans to raise $80 million by offering 7.3 million shares at a price range of $10.00 to $12.00. At the midpoint of the proposed range, Enphase Energy would command a market value of $435 million. Enphase Energy, which was founded in 2006, booked $150 million in sales over the last 12 months. The Petaluma, CA-based company plans to list on the NASDAQ under the symbol ENPH. Morgan Stanley, BofA Merrill Lynch and Deutsche Bank Securities are the joint bookrunners on the deal.
4. GasLog (GLOG), which operates 14 carriers for natural gas shipping, plans to raise $400 million by offering 23.5 million shares at a price range of $16.00 to $18.00. At the midpoint of the proposed range, GasLog would command a market value of $1.07 billion. GasLog, which was founded in 2001, booked $66 million in sales over the last 12 months. The Monaco-based company plans to list on the NYSE under the symbol GLOG. Goldman, Sachs & Co., Citi, J.P. Morgan and UBS Investment Bank are the joint bookrunners on the deal.
5. Luca Technologies Inc. (LUCA), which uses biotechnology to create and produce coalbed methane (natural gas), plans to raise $102 million by offering 8.5 million shares at a price range of $11.00 to $13.00. At the midpoint of the proposed range, Luca Technologies Inc. would command a market value of $352 million. Luca Technologies Inc., which was founded in 2003, booked $1 million in sales over the last 12 months. The Golden, CO-based company plans to list on the NASDAQ under the symbol LUCA. Citi, Piper Jaffray and Raymond James are the joint bookrunners on the deal.
6. Merrimack Pharmaceuticals (MACK), which uses its Network Biology system to discover and develop cancer treatments, plans to raise $100 million by offering 14.3 million shares at a price of $7.00. At the midpoint of the proposed range, Merrimack would command a market value of $737 million. Merrimack, which was founded in 1993, booked $34 million in revenue over the last 12 months. The Cambridge, MA-based company plans to list on the NASDAQ under the symbol MACK. J.P. Morgan is the bookrunner on the deal.
7. Millennial Media (MM), a second largest mobile advertising platform in the US, plans to raise $102 million by offering 10.2 million shares at a price range of $9.00 to $11.00. At the midpoint of the proposed range, Millennial Media would command a market value of $818 million. Millennial Media was founded in 2006. The Baltimore, MD-based company plans to list on the NYSE under the symbol MM. Morgan Stanley, Goldman, Sachs & Co. and Barclays Capital are the joint bookrunners on the deal.
8. Regional Management (RM), which offers installment, auto and furniture/appliance loans to underbanked consumers, plans to raise $76 million by offering 4.2 million shares at a price range of $17.00 to $19.00. At the midpoint of the proposed range, Regional Management would command a market value of $226 million. Regional Management, which was founded in 1987, booked $105 million in sales over the last 12 months. The Greenville, SC-based company plans to list on the NYSE under the symbol RM. Jefferies & Co. and Stephens Inc. are the joint bookrunners on the deal.
9. Rexnord Corporation (RXN), which manufactures power transmission and water management products, plans to raise $450 million by offering 23.7 million shares at a price range of $18.00 to $20.00. At the midpoint of the proposed range, Rexnord Corporation would command a market value of $1.87 billion. Rexnord Corporation, which was founded in 1891, booked $1.88 billion in sales over the last 12 months. The Milwaukee, WI-based company plans to list on the NYSE under the symbol RXN. BofA Merrill Lynch, Goldman, Sachs & Co., Credit Suisse and Deutsche Bank Securities are the joint bookrunners on the deal.
10. Vocera Communications (VCRA), which provides a mobile communications platform for hospitals and healthcare facilities, plans to raise $75 million by offering 5.8 million shares at a price range of $12.00 to $14.00. At the midpoint of the proposed range, Vocera Communications would command a market value of $283 million. Vocera Communications was founded in 2000. The San Jose, CA-based company plans to list on the NYSE under the symbol VCRA. J.P. Morgan and Piper Jaffray are the joint bookrunners on the deal.

Last week, there were 7 IPO pricings. ExactTarget (ET), which provides on-demand interactive marketing solutions to 4,700 clients, was the week's winner, ending up 39% from its IPO price.

BATS Global Markets (BATS) cancels IPO after its errors derail trading

Equity exchange Bats Global Markets Inc. canceled its initial public offering, stunning Wall Street after errors on its own computer systems derailed trading in the stock and forced a halt in Apple Inc.

"We believe withdrawing the IPO is the appropriate action to take for our company and our shareholders," Chief Executive Joe Ratterman said in a statement. Asked if that meant Bats is no longer going public, company spokesman Randy Williams said, "Yes, that's correct."

Problem: BATS shares couldn't even trade on its own exchange

In a breakdown that resembled a mini version of the 2010 "flash crash," a series of blunders hit the market debut of BATS Global Markets Exchange Inc on Friday, causing the company to take the extremely rare step of withdrawing its initial public offering of shares. Here’s the short statement from the company:

BATS Global Markets, Inc. (“BATS”) today announced it has withdrawn its planned initial public offering (IPO), which was scheduled to close on March 28, 2012.

“Although our affected market has reopened, in the wake of today’s technical issues, which affected the trading of certain stocks, including that of BATS, we believe withdrawing the IPO is the appropriate action to take for our Company and our shareholders,” said Joe Ratterman, chairman, president and CEO of BATS Global Markets.

Dave Cummings, left, BATS founder; Joe Ratterman, right, BATS chairman and CEO

The problems Friday morning caused BATS shares briefly to trade for less than a penny, confusing investors and potentially threatening the future of the fledgling exchange itself.

The glitches also fouled a trade in shares of Apple Inc, the world's most valuable company, and caused a temporary halt in the stock.

Prices plunged shortly after BATS shares began their first day of trading on the BATS exchange, a start-up that in a few years has captured about 11 percent of U.S. equity market volume and 3 percent of equity options volume.

"The one thing they would have guarded against is the integrity of their platform on the day they went public," said Francis Gaskins, president of IPO research site IPOdesktop.com, in Los Angeles.

The exchange operator had priced 6.3 million shares at $16 per share late Thursday in an initial public offering sold by lead underwriters Citigroup Inc, Morgan Stanley and Credit Suisse Group. Several former or current Credit Suisse bankers serve on BATS' board, according to a BATS regulatory filing.

As trading began on Friday, BATS stock dipped to $15.25. Then extreme turbulence hit. A slew of bad trades at less than a penny sent the stock plunging. Though the trades were later voided, the plunge unnerved investors.

Around the same time, a bad trade for 100 shares of Apple also went through, triggering a circuit breaker that temporarily halted trading of Apple.

At 11:07 a.m. EDT the BATS exchange said it was investigating system issues with trading in symbols in the range "A" through "BF," which include Apple and BATS.

The trading snags also came on the same day The Wall Street Journal printed a front-page story saying BATS was the subject of an SEC probe of high-frequency trading.

More investigations against exchanges are pending, according to a person familiar with the matter. BATS, headed by 45-year-old Joe Ratterman, was formed in 2005 by major banks and trading firms looking to break the stranglehold that the NYSE and Nasdaq had on U.S. stock trading, forcing the traditional venues to modernize their technology.

Last November, BATS acquired pan-Europe equity exchange Chi-X Europe for $300 million to challenge that region's dominant exchanges with faster and cheaper trading services.

According to BATS' offering documents, the BATS exchange has an 11.3 percent share of the U.S. equity market and a 3.1 percent share of the U.S. equity options market. BATS was scheduled to be the first IPO to list on the exchange.

Its difficult debut on Friday led some traders to question whether the exchange is reliable to compete with its bigger rivals.

"I think some companies might say ‘If they can't handle the IPO of their own stock, how can they handle the IPO of our stock?'" said Dennis Dick, a Detroit-based market structure consultant and trading member at Bright Trading LLC. "There is going to be a confidence issue of listing on BATS."

BATS Global Markets (BATS) started trading on 23 March 2012

BATS Global Markets, which operates the third largest securities exchange in the US, announced terms for its IPO on Monday. The Lenexa, KS-based company plans to raise $107 million by offering 6.3 million shares (100% insider) at a price range of $16.00 to $18.00. At the midpoint of the proposed range, BATS Global Markets would command a market value of $817 million. BATS Global Markets, which was founded in 2005 and booked $927 million in sales in 2011, plans to list on one of its own exchanges, the BZX, under the symbol BATS. Morgan Stanley, Citi and Credit Suisse are the lead underwriters on the deal. 

BATS operates two stock exchanges in the U.S., the BZX Exchange and the BYX Exchange (The BATS Exchanges), which currently account for about 10-12% of all U.S. equity trading on a daily basis.

BATS website

Retail Properties of America Inc aims to sell up to $439 million in IPO

Retail Properties of America Inc., the former Inland Western Retail Real Estate Trust Inc., expects to sell as much as $439 million in shares in a stock offering the company launched Friday.

The real estate investment trust (REIT) is offering 31.8 million Class A shares at an expected price of $10 to $12 a share, or $318 million to $381.6 million, according to a registration statement. The investment banks underwriting the offering also have the option to buy another 4.8 million shares, pushing the potential total to $438.8 million.

The shopping center owner, founded by the Inland Group Inc. in 2003, is a non-listed public REIT, meaning its shares don’t trade on a stock exchange. Retail Properties plans to sell the shares as part of a phased-in program to provide investors an opportunity to cash out. The company recently completed a reverse stock split and one-time stock dividend in preparation of the offering.

The company’s shares, which are set to trade on the New York Stock Exchange, are expected to price April 4, according to Bloomberg News. A company executive declines to comment.

March IPO calendar : 8 IPOs were priced

March is poised to have its busiest month since 2007 as eight companies set terms this week. There are 13 deals on the IPO calendar for the next two weeks. If all are completed, March could have 19 IPOs, topping the 17 IPOs completed in March of 2007.

BATS Global Markets, which operates the third largest securities exchange in the US, announced terms for its IPO on Monday. The Lenexa, KS-based company plans to raise $107 million by offering 6.3 million shares (100% insider) at a price range of $16.00 to $18.00. At the midpoint of the proposed range, BATS Global Markets would command a market value of $817 million. BATS Global Markets, which was founded in 2005 and booked $927 million in sales in 2011, plans to list on one of its own exchanges, the BZX, under the symbol BATS. Morgan Stanley, Citi and Credit Suisse are the lead underwriters on the deal.

Regional Management Corp., which provides an array of loan products to customers with limited access to traditional lenders, announced terms for its IPO on Monday. The Greenville, SC-based company plans to raise $76 million by offering 4.2 million shares (33% insider) at a price range of $17.00 to $19.00. At the midpoint of the proposed range, Regional Management would command a market value of $226 million. Regional Management, which was founded in 1987 and booked $105 million in sales in 2011, plans to list on the NYSE under the symbol RM. Jefferies, Stephens, JMP Securities, and BMO Capital Markets are the lead underwriters on the deal.

Enphase Energy, which delivers a semiconductor-based system that increases solar energy production, announced terms for its IPO on Monday. The Petaluma, CA-based company plans to raise $80 million by offering 7.3 million shares at a price range of $10.00 to $12.00. At the midpoint of the proposed range, Enphase Energy will command a fully diluted market value of $435 million. Since inception, Enphase has raised over $115 million in venture capital to help develop its unique, chip-based microinverter system, which includes a communications gateway and web-based software to monitor system performance. Backers include Third Point Ventures (the venture arm of Daniel Loeb's Third Point hedge fund), RockPort Capital, Madrone Partners (affiliated with the Walton family), Kleiner Perkins Caufield & Byers (KPCB), Applied Ventures and Bay Ventures, who will collectively own over 60% of the company following the IPO.

Enphase Energy, which was founded in 2006 by semiconductor and telecom equipment alums, booked $150 million in sales in 2011. The company plans to list on the NASDAQ under the symbol ENPH. Morgan Stanley, BofA Merrill Lynch and Deutsche Bank Securities are joint-bookrunning managers on the deal. Jefferies, Lazard and ThinkEquity are serving as co-managers.

Vocera Communications, which provides mobile communication solutions for hospitals and health care facilities, announced terms for its IPO on Tuesday. The San Jose, CA-based company plans to raise $75 million by offering 5.8 million shares (13% insider) at a price range of $12.00 to $14.00. At the midpoint of the proposed range, Vocera Communications would command a market value of $320 million. Vocera Communications, which was founded in 2000 and booked $80 million in sales in 2011, plans to list on the NYSE under the symbol VCRA. J.P. Morgan and Piper Jaffray are the joint bookrunners on the deal.

CafePress, which operates an e-commerce site where customers create, buy and sell personalized products, announced terms for its IPO on Wednesday. The San Mateo, CA-based company plans to raise $77 million by offering 4.5 million shares (44% insider) at a price range of $16.00 to $18.00. At the midpoint of the proposed range, CafePress would command a market value of $303 million. Venture capital firm Sequoia Capital is not selling and will own 17% of shares after the offering.

CafePress, which was founded in 1999 and booked $175 million in 2011 sales, plans to list on the NASDAQ under the symbol CPRS. J.P. Morgan and Jefferies are the joint bookrunners on the deal.

Millennial Media, which operates the leading independent mobile advertising platform, announced terms for its IPO on Thursday. The Baltimore, MD-based company plans to raise $102 million by offering 10.2 million shares (10% insider) at a price range of $9.00 to $11.00. At the midpoint of the proposed range, Millennial Media would command a market value of $818 million. Venture backers include Bessemer Venture Partners (18% post-IPO stake), Columbia Capital (18%), Charles River Ventures (14%) and New Enterprise Associates (15%); none are selling on the IPO.

Millennial Media, which was founded in 2006, booked $104 million in sales last year, more than double the $47 million booked in 2010. The company plans to list on the NYSE under the symbol MM. Morgan Stanley, Goldman, Sachs & Co. and Barclays Capital are the bookrunners on the deal.

Luca Technologies, which uses biotechnology to create and sustainably produce natural gas, announced terms for its IPO on Thursday. The Golden, CO-based company plans to raise $102 million by offering 8.5 million shares at a price range of $11.00 to $13.00. At the midpoint of the proposed range, Luca Technologies would command a market value of $352 million. Revenue in 2011 was $1 million, down 56% from 2010 and down 80% from 2008. Luca Technologies, which was founded in 2003, plans to list on the NASDAQ under the symbol LUCA. Citi, Piper Jaffray and Raymond James are the joint bookrunners on the deal.

Annie's, which is a leading organic food company that offers over 125 products, including a signature macaroni and cheese, announced terms for its IPO on Friday. The Berkeley, CA-based company plans to raise $75 million by offering 5 million shares (79% insider) at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Annie's would command a market value of $263 million. Annie's, which was founded in 1989 and booked $135 million in sales in 2011, plans to list on the NYSE under the symbol BNNY. Credit Suisse and J.P. Morgan are the joint bookrunners on the deal.

The 6 IPOs that have been priced this month are all trading above their offer prices. Demandware is the best performer of this group, closing up 48% in its first day of trading yesterday. Yelp trails closely, posting a 45% return since its March 2nd debut. The IPO market has shown strong returns so far this year. The FTSE Renaissance US IPO Index is up 19% year-to-date.

Shadow markets SEC alleges fraud in pre-IPO trading

From The New York Post - 03.15.2012

By Paul Tharp

Federal regulators said yesterday that it is anti-social to trade in pre-IPO stock fortunes of social media darlings Facebook, Twitter, Zynga, Groupon and others.

Following a yearlong probe of the shadowy trading practices in private shares of Silicon Valley's newest superstars, the Securities and Exchange Commission slapped a litany of fraud allegations against controversial broker Frank Mazzola for a trading scam based on fake and rigged pools of private shares.

The SEC accused him and entities he controlled - including Felix Investments - of skimming secret and illegal commissions, self- dealing and that he flatly lied about amount of stock the funds actually held.

More than $70 million was improperly raised from hundreds of investors who were misled in some cases into believing they owned actual private shares of the tech companies ahead of the outfits' successful initial public offerings, the SEC said.

Mazzola said he'd fight the accusations. The SEC wants him to pay penalties and disgorge unspecified gains from the actions.

Also collared in the SEC crackdown was SharesPost, which electronically matched buyers with private shares held by others in non-public companies such as Facebook.

The SEC accused the firm and its owner, Greg Brogger of Park City, Utah, of acting as a broker-dealer without being registered. The company agreed to register as a bona-fide broker-dealer and pay an $80,000 penalty, with Brogger paying an added $20,000 penalty.

The SEC said Mazzola, 44, of Upper Saddle River, NJ, defrauded one investor by saying he owned private shares of Zynga when he had none at all.

Separately, the SEC accused trader Laurence Albukerk, 44, of rigging prices of the unregistered shares passing through his EB Financial Group and Zoom Ventures, run by his wife.

Albukerk agreed to settle the case by paying a $303,000 penalty.

tharp @nypost.com

---

IPO no-no

SEC chief Mary Schapiro took enforcement action against SharesPost and two investment firms for improperly trading in shares of non-public companies.

The SEC has been looking at such trades because:

* Investors can be exposed to fraud because such companies do not have to disclose financial info

* The privately traded shares could carry restrictions

Originally published by Paul Tharp.

(c) 2012 The New York Post. Provided by ProQuest LLC. All rights Reserved.

Zynga holders plan to sell up to $400M in stock

From Associated Press/AP Online - 03.14.2012

SAN FRANCISCO - Zynga shareholders may sell up to $400 million of stock through a public offering, three months after the online game maker went public, to try to avoid a drop in its stock price.

The San Francisco-based company said Wednesday that shareholders are selling stock to facilitate an orderly distribution of shares. This means the company wants to make sure its stockholders don't sell a lot of stock all at once when the post-IPO lock-up period expires. Early investors typically must wait about six months to sell off parts of their stakes after an initial public offering. The expected wave of share sales can weigh on a newly public company's stock price.

But the company said it is releasing the selling stockholders from the lock-up, which was set to end on May 28. In exchange, selling shareholders, which could include company directors and executives, will agree to longer lock-up agreements for shares that they are not selling. This should stagger stock sales over a longer period so that many stockholders aren't shedding their shares on one day and driving down Zynga's stock price.

Besides stabilizing stock sales, the company also wants to increase the number of its outstanding shares with the offering. Zynga Inc. won't receive any proceeds from the sales.

Zynga, whose games are played mainly on Facebook, went public in mid-December at $10 per share. The stock closed at $13.38 on Tuesday and climbed 8 cents to $13.46 in late morning trading Wednesday.

The company has about 721 million shares outstanding, according to FactSet, and a market capitalization of $9.6 billion. The planned stock sale comes ahead of Facebook's initial public offering, expected to take place later this spring. The IPO could value Facebook between $75 billion and $100 billion.

Morgan Stanley and Goldman Sachs are managing the Zynga offering.

A service of YellowBrix, Inc.

Yelp (YELP) looks great today

Yelp (YELP) started trading on the NYSE

Yelp prices IPO of 7.15 mln shares at $15 vs. the $12-14 expected range. A total of 7,100,000 shares are being offered by Yelp, and a total of 50,000 shares are being offered by a selling stockholder, The Yelp Foundation. In addition, the underwriters have an option to purchase up to an additional 1,072,500 shares from Yelp. Yelp will not receive any proceeds from the sale of shares by the selling stockholder.

CEO Jeremy Stoppelman, COO Geoff Donaker and CFO Rob Krolik for Yelp's IPO ring the opening bell at the New York Stock Exchange on March 2, 2012 in New York City. 

CEO Jeremy Stoppelman, COO Geoff Donaker and CFO Rob Krolik for Yelp's IPO ring the opening bell at the New York Stock Exchange on March 2, 2012 in New York City.

The next wave of tech IPOs

After a year of high-profile consumer Internet IPOs—from Groupon Inc., LinkedIn Corp. and Zynga Inc. last year to Yelp Inc. and Facebook Inc. now—a slew of Silicon Valley companies that sell technology mainly to businesses are also getting ready to hit the stock market.

This new crop of IPO-ready companies are solving problems that businesses are willing to spend money on, such as improved security or better insight into customer behavior.

Splunk Inc., a San Francisco company that helps businesses capture and analyze the data they generate, and Infoblox Inc.(BLOX), a Santa Clara, Calif., maker of network-automation technology, in January both filed to go public in IPOs aiming to raise around $125 million each.

Now other enterprise-tech makers are lining up to get out of the gate. According to people familiar with the matter, security-technology maker Palo Alto Networks Inc., online human resources software company Workday Inc. and tech-management software maker ServiceNow Inc. have picked bankers or are in the final stages of choosing and informing bankers for their IPO process. Atlassian Inc., which provides software building blocks to developers, is also aiming to file for an IPO this year, said another person familiar with the matter.

Spokespeople for Atlassian, Splunk (SPLK), Palo Alto Networks (PANW) and Workday declined to comment, while ServiceNow didn't immediately respond to a request for comment.

While well-known Silicon Valley consumer Web companies could still go public—such as Twitter Inc.—2012 marks "the revenge of the enterprise tech sector," said Jim Goetz, a board member of Palo Alto Networks and a venture capitalist at Sequoia Capital, which also backed ServiceNow.

Start-ups that target businesses traditionally take longer to turn a profit than consumer Web companies. But working in these companies' favor, bankers say, are predictable revenue streams based on recurring monthly subscription fees for their products.

Splunk is still unprofitable but its revenue rose 79% to $77.8 million for the nine months ended Oct. 31 on the backs of big customers such as Bank of America Corp., Comcast Corp. and Harvard University. Palo Alto Networks, meanwhile, said in August that its run rate exceeded $200 million in bookings and that it had been cash flow positive for five consecutive quarters.