Personal finance website Bankrate (NYSE:RATE) opened down by more than 6% on its first day of public trading on the New York Stock Exchange, and is now currently trading at a near 2% discount to its initial listing price.
The company, which listed 20.0 million shares of its common stock at $15.00 per share, provides comparative rate information on more than 300 financial products, including mortgages, insurance, credit cards, bank deposits and car loans. As of Friday just after 2:00pm EST, its shares were currently trading at around $14.73.
The expected price range for the offering was between $14 to $16 per share. Bankrate sold 12.5 million shares, while selling stockholders offered up 7.5 million shares. In addition, underwriters were granted a 30-day option to purchase up to 3.0 million additional shares from the selling stockholders at the $15 per share price.
Florida-based Bankrate, which moved onling in 2006, was acquired in August 2009 by buyout giant Apax Partners after being public company for ten years.
Since Apax acquired the company, Bankrate has bulked up its business and made several asset purchases, including CreditCards.com, with both revenue and operating income steadily on the rise. However, the company is still saddled with a debt burden of nearly $300 million.
In the first quarter, Bankrate reported revenue of $99.1 million, almost triple from a year earlier, while it swung to a profit of $5.1 million, up from a net loss of $5.2 million in the prior year period. The company's operations are highly dependent on the state of the economy, as Bankrate itself warned that a decrease in mortgage production volumes could negatively impact its business.
The joint bookrunning managers for the offering were Goldman Sachs and BofA Merrill Lynch.