Chegg prices shares in IPO at USD12.50 apiece

By VCPOST Staff Reporter

Nov 13, 2013 01:25 AM EST

Startup company Chegg Inc. priced its initial public offering early this week at USD12.50 per share. The offering price could bring in USD185.5 million, said the New York Times. The IPO would reportedly give the textbook rentals and academic services company a market capitalization of about USD1.1 billion.

Chegg would be one of the first Silicon Valley companies to go public following micro-blogging site Twitter's New York Stock Exchange debut. Chegg filed for an IPO in August of this year and offered to sell 15 million shares at an initial price ranging between USD9.50 to USD11.50 apiece, according to a profile by NASDAQ.

Among the many of Chegg's stockholders are venture capital firms Kleiner Perkins Caufield & Byers and Insight Venture Partners. The said investors won't be selling their shares, according to a report by the New York Times. Meanwhile, Chegg co-founder Aayush Phumbhra will reduce his interest by about 23%, narrowing it to 2 million shares.

According to the report, Chegg's offering was arranged by investment banking firms JP Morgan Chase and Bank of America.  

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