Vimeo share sinks on first day of trading since IAC split
Vimeo Inc. VMEO,
closed its first day of trading as a stand-alone company on Tuesday with shares down 13% from where they ended at the close of a duration “on issue” trading period about a week. Shares of video software company Vimeo ended Tuesday’s session at $ 45.39, below the closing price of $ 52.08 on Monday’s issue. Shares can be traded at the time of issue before being officially distributed, although the market is relatively illiquid as trades cannot be settled in this context as the shares have not been officially issued. In total, around 52,000 Vimeo shares traded at the time of their issuance, compared with more than 9 million that changed hands once trading began on Tuesday. Vimeo’s public debut comes after its separation from InterActiveCorp. IAC,
with IAC shareholders receiving 1.6235 Vimeo shares for every IAC share they held in a distribution that took place after close of business Monday. The company ended Tuesday’s session with a market value of around $ 8 billion, above the $ 6 billion valuation IAC said Vimeo recovered in January after private investment. IAC CFO Glenn Schiffman said Vimeo’s share price on Tuesday was an “overwhelming achievement for the team and shareholders” given the higher valuation it implied relative to the investment. in January actions. Vimeo is the 11th company to exit the IAC and increased revenue 57% to $ 89.4 million in its most recent quarter.