Shares of web design and internet services firm Agency.com Ltd soared on their Nasdaq debut Wednesday, trading as high as 277% above their offering price before closing the day at $76, for a 192% gain. The New York-based company sold 5.9 million shares of common stock – representing a 17.5% stake – in an initial public offering at $26 per share, above the expected range of $22 to $24.
The shares opened at $92.50 and traded as high as $98 before a sell-off later in the session brought them back down to a closing price of $76. Based on that level, the company’s market capitalization is $2.56bn, despite revenue of just $76m through the first nine months of this year and a net loss for the period of $22m.
Total volume for the day was 8.2 million shares. Goldman, Sachs & Co and Salomon Smith Barney acted as the lead managers of the offering, with Hambrecht & Quist serving as co-manager. The underwriters were granted an option to purchase up to 885,000 additional shares of common stock to cover over-allotments. The stock is trading under the ticker symbol ACOM.
