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.