DigitalGlobe trading higher after raising $279 million in IPO
Shares of DigitalGlobe (DGI), which provides satellite photography to Google (GOOG) and Microsoft (MSFT), are trading higher today after raising $279.3 million in an initial public offering yesterday.
That investors are willing to put fresh money into companies including DigitalGlobe and recent IPOs Rosetta Stone (RST) and Bridgepoint Education (BPI) shows promise for the IPO market, which had no activity at the end of 2008 or the start of this year.
Shares of DigitalGlobe are up $2.59, or 14 percent, to $21.59 in afternoon trading, after earlier trading as high as $25. The company sold 14.7 million shares yesterday at $19 each, which is higher than the expected pricing range of $16 to $18 a share.
DigitalGlobe, which is based in Longmont, Colorado, is the third technology IPO this year.
The IPO does, though, come a week after e-mail marketing company ExactTarget canceled its $75 million IPO last week and instead raised $70 million in venture capital.
Much of the money DigitalGlobe raised went to hedge funds and institutional investors, which had invested $470 million in the company, according to a Bloomberg News story. Morgan Stanley is DigitalGlobe's largest stockholder
The company's CEO Jill Smith, is a former chief operating officer at Micron Electronics.
DigitalGlobe's predecessor, WorldView Imaging, in 1993 was granted the first license by the U.S. government that allowed a private company to build and operate a satellite system to gather high-resolution digital imagery of the earth for commercial sale. DigitalGlobe has three satellites in orbit.