CMP Media (CMPX)
, taking advantage of a resurgent market for technology IPOs,
today thrust itself into the public realm, raising $110 million in capital.
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
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
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.
Bear Stearns and Furman Selz served as underwriters of
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
CMP also announced that CommunicationsWeek will change its name to
InternetWeek effective as of September 1, 1997.