Shares of Demand Media, the content-farming company with unconventional accounting practices, rocketed 35 percent higher following the company’s initial public offering this morning.
The offering included 8.9 million shares, with Demand selling 4.5 million shares at $17 per share. Existing shareholders sold another 4.4 million shares–a last-minute boost over the 3 million shares they intended to sell. Demand Media also raised the offering price beyond the anticipated $14 to $16 range.
The offering, which Demand says netted $151.3 million in gross proceeds, places a valuation of about $1 billion on the company, which has yet to turn a profit. Looks like investors were hungry for a piece of an Internet company following a long drought of IPO activity generally. Shares of Demand were lately up $5.95 at $22.95 in early trading on the New York Stock Exchange.
mtaylor [at] observer.com | @mbrookstaylor