Demand Media leads the IPO charge in 2011 with a strong pricing last night at $17, although many have argued about the virtue of what they do and fretted about whether Google might be “declaring war” on the company and changing their search algorithms to exclude some content from Demand Media sites.  Still, the success and strong economics of the business are undeniable.  For anyone planning to do research on the company post offering, we have provided the Demand Media roadshow transcript.

Demand Media (DMD) should perform well in the aftermarket.  Our preliminary IV model yields a stock price of $30.

Nielsen also priced and paves the way for more private equity IPOs this year.  We’ve added it to the IPO Candy Ecosystem and will complete an IV and comparable analysis in time.

Earlier this week Research 2.0 published a pre-IPO Snapshot of Neophotonics.  The full report will be available on IPO Candy later today.  This report includes an IV model that supports a $13-14/share valuation compared to the current $9-11 filing range.

Other deals we are working on include BCD Semiconductor, InterXion and AcelRx, and we are sifting through the healthcare-laden calendar for others that are more technology and less clinically-oriented.

As an aside, we’ve also learned that a little-known IPO path described as “Reg A” is likely to be liberalized this year.  This will create a way for smaller companies to do public market offerings and create more opportunities for investors to access growing companies earlier in their lifecycle.  We are putting together a separate post on this topic, with links to additional sources of information on the change and what it might mean for the IPO market.

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