AllAbout, the Japanese human-compiled portal (the Japanese version of About.com) has debuted strong on the stock market: its shares soar 727 percent over the offer price. The company’s stock closed up to $19,500 on Japan’s Jasdaq after pricing at $2,360.
Through the IPO, the company raised $17 million and saw its market capitalization reach $1.24 billion at the end of trading. That’s a generous valuation for a company with a net income of $2.7 million on sales of $20 million for the year ending March 2005.
The market’s reception was a big win for backer DCM-Doll Capital Management, a VC firm based in Menlo Park, CA. DCM invested $540,000 in AllAbout’s first round in 2000 along with Recruit, a Japanese job ad agency.
In September last year, Yahoo Japan along with Recruit took at 41 percent stake in AllAbout, so this is proabbly a big win for them too..