Content cultivator Demand Media is raising the per-share price of its initial public offering right before it begins trading on the New York Stock Exchange today, according to an SEC filing reported by paidContent. What a way to return to what had been a very dry well for internet-company IPO activity!
Demand, which has raised some eyebrows over its definition of profitability and its creative way of accounting for production costs, is pricing its shares at $17 a piece, up from a previous range of $14 to $16. As paidContent points out, this is a signal of strong demand for stock in the company that produces servicey, ostensibly evergreen content at low cost to the chagrin of media pundits and even its own employees.
We’ll post some updates today to see how the company fares on its first day in the public spotlight. The ticker symbol is DMD, for those playing along at home.
mtaylor [at] observer.com | @mbrookstaylor