Demand Media IPO: Review Analysis & Details of Demand Media IPO

There is news about an online content creation company's IPO to hit the primary stock markets very soon. The news has come out about the online contenct company called Demand Media , which is expected to come out with its IPO by January end. It is reported that it has got clearance for its IPO from SEC recently. Demand Media arm has decided to come out with the Initial Public Offering or IPO.
In this article, we will look at the Review, Analysis and Details of the Demand Media IPO and try to do the Review and analysis of Demand Media IPO.

Demand Media IPO: Review Analysis & Details

Some basic details first about the Demand Media IPO, which are available as of now:
- The size of Demand Media IPO is around 112.5 million USD

- The company owns big websites like eHow.com, LiveStrong.com and other sites. It also serves more than 350 websites including some like reputed new papers

- The business model is simple - hire and pay freelancer content creators, use algorithms to get and serve the relevant content as per the increasing online demand, get paid through Cost per click or CPM impression baseds advertising like Google Adsense

What are the primary reasons for Demand Media to come out with the Demand Media IPO?
The main reason for any company to come and list its shares in the stock market is to collect money from common public and so is the case with Demand Media IPO
At the time of writing this article, it was not known about how this money collected will be used by Demand Media

What is the issue size of the Demand Media IPO?
Around 112.5 million USD is the size of the Demand Media IPO.

What is the price band of Demand Media IPO?
It is reported that the recommended price band for Demand Media IPO $14 to $16 per share.

How many shares will be sold in the Demand Media IPO?
The total no. of shares to be sold through this IPO is 8.65 million shares.

What are the IPO dates for Demand Media IPO
The IPO dates have not yet been finalised. But the IPO is expected to hit the markets sometimes in the last of January 2011. The roadshows will go on for the next two weeks

How will the capital raised by Demand Media IPO be used?
No info about that as of now.

Any ratings given to Demand Media IPO?
No information about that as of now.
It will trade with Symbol DMD on the New York Stock Exchange (NYSE)

What are the analysts recommendations and business results for Demand Media IPO?
Most important thing that investors in such online media copanies shouold know is that this is purely an online business. It is driven by Demand and Supply of the online content. So when sites like ehow.com and livestrong.come are seeing good traffic, that leads to more revenue for the company. However, we should not forget the dotcom bubble burst where majority of the online dotcoms and related companies saw a rapid fall.
It's a good model, to hire freelancers on need basis (and demand basis), to create content and then sell the content to other websites or host it on your own website to get paid through advertising.

This IPO is eagerly watched and awaited by many. The reason is this is one of the first IPO's of the year 2011 so response to this might indicate the investors mood. ALso, being an online company, this is looked upon as a risky business. If the response to this IPO is going to be good, then it will again indicate investors mood whether they are willing to take up riskier investments or not. Investors need to take the call according to their risk appetite