CMP Media made its stock market debut on Friday, with the company selling 3.75 million shares and the founding Leeds family interests selling 1.25 million at $22 a share. That was a premium above CMP's anticipated $17-to-$19 offering price. The stock, listed on Nasdaq, closed at $24.875, putting a market valuation on CMP of $562.8 million. The computer magazine publisher will use most of its sale proceeds to repay debt and make a distribution to the Leeds. Outsiders now will own 22% of CMP, but the Leeds retain 97% of voting rights. In its prospectus, CMP revealed each of its paid circulation magazines is losing money and reported a loss last year of $11.8 million in Internet services, leaving CMP reliant on controlled circulation trade titles for profits.
Copyright July 1997, Crain Communications Inc.