Young & Rubicam stock got a good reception from investors as it began trading on the New York Stock Exchange today. Chairman-CEO Peter Georgescu rang the opening bell as the stock began trading at $28.06 per share--far higher than the company's estimate of $21 to $24 per share--under ticker symbol YNR. At 3 p.m. EDT, the stock was trading at $28 per share. The 16.6 million shares--roughly 25% of the company--in the IPO would raise $466 million at the $28 per share price. Y&R plans to use part of the proceeds to repay part of a $331 million term loan it used in a 1996 recapitalization, where the company bought out a number of former and present employee shareholders.
Copyright May 1998, Crain Communications Inc.