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IPO

Echo Global Logistics

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(Update 2) Some employee reviews at jobvent.

(Update) Market cap calculation: the company issued 5.7 m * $14 = $79.8 m. According to 424B4: (principle and selling shareholders), 1,714,710 shares is about 8.0 % (last row). 5.7 /1.715 * 8% = 3.3241 * 8% = 26.59%. So the market cap is about:
$79.8 m / 26.59% = $300 m

Company has revenue of $203 m in 2008.

(Original) Better than EDMC. The main theme is it has own software. From my reading from Netflix, one thing got Netflix going was its logistics software (how to route DVDs around the country, making it more efficient). Echo Global Logistics was going to IPO last year (bloggingstocks), but delayed because its underwriter Lehman Brothers went bankrupt.

S-1/A Prospuctus. The majority of proceeds will be used to expands sales network. Positive.

Seekingalpha: Echo Global Logistics Expected to Deliver IPO This Week. Noticed competitor C.H. Robinson Worldwide (Nasdaq:CHRW), which is bigger.

Link to IPO home.

Disclosure: have long postion on ECHO as of this writing. Subject to change without notice.

WSJ article: Echo Global Logistics 5.7M-Share IPO Priced At $14/Shr
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Shipment-management company Echo Global Logistics Inc.’s (ECHO) initial public offering of at least 5.7 million shares priced at $14 each, the middle of prior expectations.

Echo is the last of three stocks scheduled to go public this week in the U.S. Biopharmaceutical specialist Talecris Biotherapeutics Holdings Corp. (TLCR) started trading Thursday; its shares closed up 11%, the first pharmaceutical IPO to perform well in two years.

College operator Education Management Corp. (EDMC) priced Thursday at the bottom of expectations. It will sell at least 20 million shares at $18 each. The company, owned by private equity firms, has 92 schools, including Argosy University.

Echo comes to market as the worldwide shipping market is slumping along with the broader economy. In the six months ended June 30, its profit dropped 53% while revenue climbed 22%.

Echo plans to use the IPO proceeds to expand its sales force, enhance technology and acquire interests in complementary businesses. The funds also will go to debt repayment, working capital and other general corporate purposes.

The company, which plans to list on the Nasdaq Global Market under symbol ECHO, will have 21.5 million shares outstanding after the IPO.

Echo originally filed for an IPO in April 2008 but the bankruptcy of investment bank Lehman Brothers Holdings Inc. (LEH) a year ago forced Peter Barris, managing general partner for venture capital firm New Enterprise Associates, to rethink those plans. The $2.5 billion NEA fund is a backer of Echo Global. Lehman and Citigroup Inc. (C) were among those involved in ushering the earlier planned offering to the markets.

Echo and Education Management are set to begin trading one week after the busiest IPO activity in the U.S. since late 2007. Global IPO action has been climbing of late as equities markets continue their rebound from multiyear lows earlier in 2009.
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Question:
1) Revenue booking includes trucking services, reasonable? (concierge service like ebay concierge, or to differentiate this? refer to accounting book)
2) Preferred shares cancelled after IPO (earning will be better for common shareholders)?
3) ETM software compare to others (C.H.Robinson)?
4) InnerWorkings (Nasdaq:INWK) profile, history
http://finapps.forbes.com/finapps/AccountingRisk.do?tkr=INWK

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