Tuesday
September
02
2014
9:55 am
Weather

  Home
  Local News
  State / National / World
  Sports
  Opinion / Letters
  Business
  Arts / Entertainment
  Lifestyle
  Obituaries
  Calendar
  Submit Event
  Comics / Games
  Classifieds
  DJ Designers
  Archives
  Advertise With Us
  About Us
 
 
 
 

Check out our archive of Dining Guides - Yum!

Chegg falls in first day as publicly traded company
November 14, 2013, 05:00 AM The Associated Press

NEW YORK — Not all Internet IPOs are created equal.

Shares of Chegg declined Wednesday in their first day on the New York Stock Exchange, offering proof that investors are selective in their affection for newly issued technology stocks.

Chegg Inc.’s shares, trading under the “CHGG” ticker symbol, dropped $2.82, or 23 percent, to close Wednesday’s trading session at $9.68.

The Santa Clara-based company, which provides online textbook rentals primarily to college students and other education services, said the initial public offering of 15 million shares priced at $12.50 per share. That was above the projected price range of $9.50 to $11.50 per share.

Chegg raised approximately $187.5 million in the transaction.

Investors may have been concerned with Chegg’s lack of profits. According to the company’s IPO paperwork, Chegg has “experienced significant net losses” since its incorporation in July 2005. The company lost $37.6 million in 2011, $49 million in 2012, and bled $21.2 million in the first six months of this year. Although its annual revenue has consistently grown —to $213 million in 2012, Chegg told said in its IPO filing that it couldn’t assure investors that it will be profitable anytime soon.

Chegg’s Wall Street debut comes just days after another unprofitable Internet company —Twitter— raised more than $1.8 billion in a successful IPO that values the company at roughly $29 billion.

Chegg offered 14.4 million shares as part of its IPO and a selling stockholder offered 600,000 shares. Chegg won’t receive any proceeds from shares sold by the selling stockholder.

The IPO’s underwriters have a 30-day option to buy up to an additional 2.3 million shares to cover any excess demand.

 

 

Tags: million, chegg, shares, company, investors,


Other stories from today:

 

 
Print this Page Print this Page  |  Bookmark and Share
<< Back
 
Return To Archives
 
  


 
 
 
Daily Journal Quick Poll
 
How often do you go to San Francisco?

Five days a week, I work there
Every weekend
About once a month
Every few months
About once a year

 

 
 
 
 
 
 
U.S. home prices rose at slower pace in July
WASHINGTON — U.S. home prices rose in July but at a slower rate compared with earlier this year. T..
U.S. manufacturing grows at fastest pace in 3½ years
WASHINGTON — U.S. manufacturing grew in August at the strongest pace in more than three years as f..
U.S. construction spending up 1.8 percent in July
WASHINGTON — U.S. construction spending staged a strong rebound in July, rising by the largest amo..
More >>  
 
 
  
 
  
 
©2014 San Mateo Daily Journal
San Mateo County notice of bulk sale