U.S. Book Publisher Considers an IPO in Canada
%%DynaPub-Enhancement class="enhancement contentType-HTML Content fragmentId-1 payloadId-61603 alignment-right size-small"%% IPOScoop.com publisher John Fitzgibbon further explained to the Raleigh News & Observer that because Lulu is listing its stock in Canada, it "will likely pay less in costs than an IPO on a U.S. exchange, and Lulu won't have to submit to the same rigorous regulatory scrutiny."
Strong Canadian Equity Markets
Also, Dow Jones's report notes that Lulu.com is eyeing an IPO "at a time when Canadian equity markets have been strong and, more importantly, the IPO market has shown signs of revival." There were 28 new issues worth C$1.8 billion ($1.75 billion) on the Canadian exchanges in 2009, compared with the C$682 million ($663 million) raised from 57 new issues in 2008. And while Lulu.com has offices in Bangalore and London, its more significant presence is in Toronto: Owner Bob Young, co-founder of open-source software company Red Hat (RHT), grew up in Canada and owns the Hamilton Tiger-Cats of the Canadian Football League.
Whether it's actually a good time for Lulu to go public is up in the air. The company, which says it has published more than half a million titles in 2009 and that it has 15,000 new authors from 80 different countries signing on each week, reports that revenue rose 37% from 2007 to 2008 but did not say if it turned a profit. Still, any signs of growth could make Lulu.com an attractive company for potential shareholders, and a good share price might also entice other successful pay-to-publish firms to gamble on a public offering.