Shares of the Web portal geared toward women surged to close at 18.5. The San Mateo-based company sold 3.75 million shares late yesterday for $10 per share.
Investor enthusiasm was particularly noteworthy considering the Dow Jones Industrial Average lost 266 points today, suffering its worst decline in a year and capping a week in which it lost 630 points.
Also worth noting was the tremendous volume in Women.com shares: 12.4 million changed hands today--several times the number that was floated.
Investors may have been impressed with some of the industry giants that are investing in the company.
Walt Disney Company and Hearst Corporation bought 1.25 million shares each of Women.com at $10 per share. Those shares were sold in a private placement and were in addition to the 3.75 million shares sold to the public. In all, Women.com raised $62.5 million.
Women.com offers content from 12 magazines such as Cosmopolitan, Good Housekeeping, Prevention, and Redbook.
Underwriters for the sale were Morgan Stanley Dean Witter, Deutsche Bank Alex Brown, and Salomon Smith Barney.