Here we go again. Online travel agent Priceline.com has become the latest Internet company to raise the price of its initial public offering in a dramatic way. Priceline announced Friday that the new pricing range is $12-$14, up from $7-$9. Just to put this in perspective, a rise from $9 to $14 is more than a 50 percent gain.
Priceline is a unique business in that it allows customers to name their price for travel arrangements on the condition that a purchase must be made if Priceline can match that price.
When it comes to its stock, however, Priceline is just like any other Internet company. It can pretty much sell shares of its IPO for whatever price it asks and still expect to see its stock climb on the first day of trading.