Shares of CBS Outdoor Americas rose 5.4 percent in their trading debut, valuing the outdoor advertising company at more than $3.5 billion as it pushes for a bigger slice of the ad market and its parent CBS focuses more on content.
CBS Outdoor’s solid debut on Friday contrasted with that of “Candy Crush Saga” game maker King Digital earlier this week, suggesting that demand remains strong for shares in stable companies with strong cash flow.
“What the King IPO did is bring back some sanity in how offerings are priced,” said Francis Gaskins, research director at Equities.com. “What investors like are big established companies with high barriers to entry.”
Shares closed at $29.50. The IPO sale contained 20 million shares priced at $28 per share, the top end of the expected price range.