YuMe share rises by 9% in market debut after pricing IPO less than expected range
YuMe Inc.'s shares increased by up to 9% during their market debut. This was following the online advertising corporation's initial public offering was priced 25% less than the low end of the projected range.
YuMe currently provides Web-based advertisements in a form of a video. The corporation priced its IPO of 5.1 million stocks at US$9 for every stock and raised US$46 million. YuMe originally established a range between US$12 and US$14 each stock.
The company's stocks gained a record of US$9.85 which valued YuMe at around US$312 million. The figure was up by 2% during the mid-morning trading. Khosla Ventures and Accel Partners had backed YuMe, making the two venture capitalists own 34% of the whole company concurrently.
An advertising technology business like YuMe could help the advertisers in purchasing ads more cost-effectively. It could also aid in selling space on the page of websites. Research firm, eMarketer, said the display advertising expenditures in the US would reach US$17.7 billion this year. It added that the figure would increase since corporations wanted to use various platforms like smartphones and tablets.