- Tools for Investors
- Stock News
- Investing Ideas
- Econ & Policy
- Personal Finance
Brightcove Inc. (NASDAQ:BCOV) shares soared during the online video company’s first day of trading on the Nasdaq. Brightcove, known for providing video hosting and production tools to many private businesses, launched its initial public offering of five million shares at $11 each, but by mid-afternoon Friday, shares were trading at $14.60, an increase of almost 33 percent.
Don’t Miss: AT&T, Sprint and Verizon Eyeing This Spectrum.
Morgan Stanley (NYSE:MS) and Stifel, Nicolaus & Company were the joint book-running managers on the offering, while Capital Markets LLC, Pacific Crest Securities LLC, and Raymond James & Associates Inc. acted as co-managers, according to The Boston Globe. The Cambridge, Massachusetts-based company had hoped to raise $55 million from the offering, and had guaranteed underwriters the option of purchasing up to 750,000 added shares of common stock, as necessary, to cover allotments.
Brightcove’s results speak well to what has been a lean year for IPOs. According to data from Renaissance Capital, there have been about 30 percent fewer IPOs so far this year than by the same point last year (before this week, there had been only 16 IPOs in 2012), with only $1.5 billion in revenue compared to $8 billion when contrasting the two periods.
Brightcove, founded in 2004 by Jeremey Allaire, announced plans for an IPO back in August. The company was among the first to anticipate the growing demand for Internet video, and targeted its services to companies that wanted to include video on their websites but didn’t want to employ the specialized knowledge and hosting services themselves. Brightcove’s customers include Macy’s (NYSE:M), General Motors (NYSE:GM), Staples (NASDAQ:SPLS), The New York Times Co. (NYSE:NYT), The Weather Channel (NASDAQ:CMCSA), and Condé Nast. The New York Times Co. also holds a small stake in the company.
Brightcove posted revenues of $63 million in 2011, but with a net loss of almost $17 million.
To contact the reporter on this story: Jonathan Morris at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org
Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
There's always a bull market in some sector! Find the best opportunities in commodities.