Kayak raises $91 million as shares go public

US travel price comparison site Kayak has raised $91 million through an Initial Public Offering of its shares after being valued above expectations.

The IPO, completed yesterday having been originally filed in November 2010, saw the firm’s shares valued at $26 above the expected range of $22 to $25.

The float comes after initial plans were put on hold in May, around the time when Facebook floated after the social networking site lost a third of its value.

This followed a decision to delay the IPO in September last year because of what was described at the time as “unfavourable market” conditions due to volatile in the equity markets.

Kayak shares are expected to start trading on the Nasdaq today.

The Connecticut-based company reported revenues of $224.5 million in 2011, up 32%, while income was up 21% to $9.7 million.

In 2010 Kayak’s main technology supplier ITA Software was acquired by search giant Google prompting complaints from travel firms in the US that used the powerful software.

Opponents to the deal won some concessions ensuring continued access to the ITA software but Google’s launch of Flight Search in the US, has prompted concerns that rival firms like Kayak will struggle to compete.

Kayak’s current deal with ITA is set to expire in December according to Reuters which reported that 39% of Kayak’s airfare queries were powered by ITA in the first four months of 2012.

Kayak’s has a number of venture capitalists backers including Sequoia Capital, Accel Partners, General Catalyst Partners and Oak Investment Partners and IPO was underwritten by Morgan Stanley, Deutsche Bank, Piper Jaffray, Stifel Nicolaus and Pacific Crest Securities.

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