LogMeIn Prices at $16 a Share, Windfall for VC Backers


Update: LogMeIn is trading at $20.13 a share in its first hour of trading.

LogMeIn, a Woburn, Mass.-based company that is going public, has priced at $16 a share, according to The Wall Street Journal. LogMeIn will start trading tomorrow under the ticker “LOGM.” With 6.7 million shares on sale, LogMeIn raised a total of $107.2 million. It’s $16-a-share pricing was at the high end of the $14-$16 range, showing that there is a significant market interest in this company, as I pointed out in my previous post.

LogMeIn is tapping into two major trends — the rise of the distributed, mobile work force and the need for remote access — which are prompting companies to look at remote work and collaboration, especially as mobile broadband starts to become more and more pervasive. The offering is a massive windfall for its venture backers, highlighting why IPOs are the lifeblood of Silicon Valley. Here are some of them:

  • Integral Capital Partners sold $5 million worth of stock to own 5.4 percent of the company, a stake worth $18.4 million.
  • Intel Capital will own 4.2 percent of the company after the sale, worth $14.2 million.
  • Polaris Venture Partners sold $7.4 million worth of stock to hold 13.9 percent of the company worth $47.6 million.
  • Prism VentureWorks owns 18.2 percent of stock, worth $62.3 million.

The Wall Street Journal’s Scott Austin points out that these firms invested $20 million in two rounds and now their shares are worth $155 million. Sure M&A can help VCs make money, but it’s IPOs that provide the ultimate windfall.