Electronic software distribution company Digital River Inc has priced its initial public offering of 3 million shares, all of them new at $8.50 per shark to raise $25.5m before expenses. However, that’s quite a bit less than the $40.0m the company predicted in its initial S-1 filing in mid-June (06/16/98) and the company said that was because it only felt the market would support $8.50. After expanses the company expects to net just over $23m, according to company comptroller, Greg Smith. Nevertheless, the shares performed fairly well on a bad day for stocks all round, closing at $9.875, a 23.4% rise on the offer price, which is not spectacular by any means but perhaps acceptable on such a day and the fact that Digital River is not that well known. Not all the shares were sold on, unsurprisingly – the volume was 2.4 million, so some investors are clearly holding on to them to trade in the future. Smith declared himself satisfied at the result. The offer was underwritten by BT Alex Brown Inc, BancAmerica Robertson Stephens and Bear, Stearns & Co Inc.
