Angie’s List Seeks $113 Million From IPO

In the wake of Groupon’s successful IPO, Angie’s List is apparently set to issue its own IPO on Thursday. The offering would raise up to $113 million for the Indianapolis-based company, which provides members-only reviews of services and medical providers. For us, the big question is whether consumers will continue to be willing to pay from $10 to $67 a year for a safe firewall when other review services, including Yelp and ServiceMagic, are free (answer: I’m a member).

We’ve recently written about highlights from the S-1, noting that the company has a membership roster of 820,000 paying households in 170 U.S. markets, and earned $25.58 million last year. We also noted that while revenues were split 50/50 between membership fees and advertising in 2008, it has now shifted to 39 percent membership fees and 61 percent advertising. The company, which apparently turned down a buy-out offer from Gannett several years ago, currently has 19,750 advertisers.

Additional opportunities come from the introduction of Angie’s List’s Big Deal, which is now in 27 cities and is available to members and non-members alike. More than 63,000 deals have been sold since its launch in June 2010.