Lead generation website CreditCards.com has filed to go public in an initial public offering to raise $115 million.
The CreditCards.com portal serves as a destination site for those seeking to compare credit cards offers. The site generates revenues through acting as a lead generation service for issuers of credit cards and their marketing agents. The Company generated revenues of more than $27m for the first half of 2007, up from $18.7 million for the same period a year earlier.
The Company was created last year by Elisabeth DeMarse with funding from Austin Ventures. DeMarse, of course, previously led the growth of Bankrate.com from $15m to $36m in revenues and also served in leadership roles at Hoovers and Bloomberg, among others.
The Company indicates that it plans to use funds from the IPO to service debt, currently $154.8 million and for other expenses.
While the timing might seem unusual in light of the current credit squeeze, what the past has shown us is that, regardless of market or economic conditions, consumers are always looking at ways to manage their debt. And with tighter markets, credit card issuers will be willing to pay a premium to generate more leads and fund growth.
Credit Suisse Securities will be the lead underwriter on the IPO, with participation by Citigroup and Thomas Weisel Partners.
