Retro chic may be 'happening' but, as Internet software firm
Loudcloud has realized, it may not work for your IPO.
Positioning itself as an 'old-school dot-com' (read: for the quarter
ending October 30, it showed losses of dollars 58m), Loud-cloud opened
on Nasdaq at a twice-reduced price of dollars 6.03. It was forced to
increase the number of shares from 10m to 20m and still fell dollars 50m
short of raising its dollars 200m cash goal.
The disappointing debut contrasts starkly with Loudcloud founder Marc
Andreesen's first dabble. When his business venture, a little browser
called Netscape, debuted in 1995, it earned a market cap of dollars 1.07
Loudcloud ended up with dollars 154m. But hey, that'll still buy plenty
of hula hoops and pet rocks for the swingin' Loudcloud retro gang.