Demand Media’s Stock Jumps 33 Percent On First Day

Demand Media’s stock jumped 33 percent on its first day of trading. As we reported yesterday, the company had already priced its shares at $17, above the $14 to $16 a share it had initially said it would sell its stock for. Investors ended up bidding up the company’s stock to $22.65 a share, giving the company a market value of $1.87 billion.

The company’s strong debut is the second best we have seen by a digital media-related company over the last year. Only Chinese video site Youku, which soared 160 percent on its New York Stock Exchange debut last month, had a stronger start.

Demand Media (NYSE: DMD) says it raised $151.3 million in the initial public offering, above the $138 million it had initially expected to raise. Overall, it was an up day for the stock market, with the Dow briefly surpassing 12,000.