OpenTable, the restaurant-reservation site, set the terms for its IPO in an SEC filing today. OpenTable is looking to sell about three million shares (or some 15 percent of the company) for a range of between $12 and $14 a share, which values the company at about $260 million.
The company’s management says it owns about half of the shares that would be sold in the public offering. After management’s portion of the funds raised are deducted and legal and banking fees are subtracted, the company says it would net about $16 million in cash, which it will use to fund operations.
OpenTable is an online reservation service that has restaurant partners in all 50 states and claims to have seated 100 million diners since its inception in 1998, including nine million during the first quarter 2009. As of the end of 2008, it offered reservations from about 10,000 restaurants. The company earns its revenue through fees to install OpenTable software at restaurants, a monthly subscription fee to use that software, and a fee for each restaurant guest that is seated through opentable.com.