CMP, publisher of such magazines as Computer Reseller News, Windows, and HomePC, floated out 5 million shares at $22 a share. The target price comes in nearly 16 percent higher than CMP's initial pricing range of 17 to 19 a share set earlier this month.
Shares of CMP rose 18 percent on the first trade to 26, but tapered back in morning trading to close at 24-7/8, down 1-1/8.
Shares of CMP rose 18 percent on the first trade to 26, but have tapered back in morning trading.
With the IPO target price of 22 a share, CMP launched with a market value of nearly $500 million.
Of the 5 million shares of class A common stock offered, 3.75 million are being offered by the company, which will generate $82.5 million in capital for CMP. Another 1.25 million shares are being offered by stockholders.
The company will use a portion of the net proceeds to repay outstanding balance under its revolving credit agreement. As of March 31, that figure was $34.3 million.
The company will also pay pre-IPO stockholders some previously undistributed earnings. It will use any remaining net proceeds from the offerings for other general corporate purposes.
The company's stated objective is to continue to grow in revenues, profitability, and market share as a publisher of magazines and newspapers serving the builders, sellers, and users of technology worldwide.
CMP said in a filing with the Securities and Exchange Commission it would monitor new developments and trends in technology markets to identify emerging audiences for technology-related information, as well as expand its international business by launching local versions of its strongest publications, either independently or in joint ventures with local publishers.
The company estimates that revenues for the three months ended June 30, will be about $125 million, compared with $107.7 million for the same period in 1996. Income from operations for the three months ending June 30, is anticipated to be approximately $13.5 million, compared with $9.2 million for the same period last year.
The company previously announced that it will cease publishing NetGuide Magazine after its August 1997 issue and will integrate Internet-related content into Windows Magazine and its NetGuide Internet service.
CMP also announced that CommunicationsWeek will change its name to InternetWeek effective as of September 1, 1997.