Demand Media Jumps 35 Percent in IPO

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. 

From Fortune:

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] | @mbrookstaylor

Demand Media Jumps 35 Percent in IPO