trupanion-g661590dcovpg002Seattle pet health insurance company Trupanion is the latest company to start barking on Wall Street.

The company, which is based in Seattle’s Ballard neighborhood, today priced its IPO at 10 per share raising about $71 million. That was below the company’s projected range, which was set at $13 to $15 per share and could have reeled in up to $122 million, including shares allocated to underwriters.

Shares of the company opened on The New York Stock exchange at $11.25, but have since fallen to about $10.60.

The 335-person company said that it had 181,634 pets enrolled in the health insurance program as of March 31, 2014. That was up almost 600 percent in the past four years.

The company lost $4.9 million during the first quarter and has accumulated a $40.9 million deficit since it was founded. It is backed by Maveron, which owns a 33 percent stake of the company, and led by CEO Darryl Rawlings.

“Our data-driven, vertically-integrated approach enables us to provide pet owners with what we believe is the highest value medical plan for their pets, priced specifically for each pet’s unique characteristics,” the company writes in a SEC filing. “Our growing and loyal member base provides us with highly predictable and recurring revenue. We operate our business with a focus on maximizing the lifetime value of each pet while sustaining a favorable ratio of lifetime value relative to acquisition cost.”

Trupanion is the second Seatle company to go public this year, following in the footsteps of biotech Alder Biopharmaceuticals which went public in May.

Comments

  • Guest

    Expected to be at $13 to $15? It looks like you could say that Trupanion was “barking up the wrong tree” with its expected price!

    Thank you. Thank you. Thank you, John. Thank you, everyone. Thank you. I’m great. Thank you. Thank you very much. Thank you so much. I’m very witty. Thank you. Please like and share this comment with the hashtags #TrupanionIPOFail and #BarkingUpTheWrongTree. Thank you. Thank you so much. Thank you for everything.

  • Dave

    Really guest? Hard to consider this a fail. They had the misfortune of pricing in a week where the Fed Chair commented that many growth stocks seemed over priced, and a day where a jetliner was shot out of the sky. Small and mid-cap companies got whacked pretty hard.

    Sometimes just getting an IPO priced, not having to withdraw, is a success and this looks like one of those. Not a mega win but not a failure either. The market looked better a week or two ago when they started the roadshow process. Once you start, you generally can’t go backwards without looking like a failure. Hopefully they can take the capital and grow the business.

    • Guest

      Dave, please use more contemporary language:

      Sentence 1: “Hard to consider this a fail.”

      Sentence 2: “Hard to consider this a #TrupanionIPOFail (emoji of dog) (emoji of poop)”

      Sentence 1 may be shorter, but sentence 2 serves two important purposes:

      a. It includes the hashtag I entered which means that this will become the symbol of our conversation. Hashtags can even be monetised later on; I can make a particular liquor brand the official creme de menthe of #TrupanionIPOFail, whereas simple words don’t provide as much brand integration opportunities.

      b. It includes emoji which spice up the conversation by injecting a little color both linguistically and literally. The Chinese have been communicating with pictograms for thousands of years and their society is 1.3 billion people strong. Get on board and we too can achieve this level of presence!

      • Slaggggg

        #TrupanionIPOFail

    • balls187

      #TrupanionIPOStoryDisqusCommentThreadReplyFail

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