Vimeo stock sinks in first trading day since split from IAC

Vimeo Inc.
VMEO,
+0.04%
closed its first trading day as a standalone company Tuesday with shares down 13% from where they ended at the close of a roughly weeklong “when-issued” trading period. Shares of video-software company Vimeo finished Tuesday’s session at $45.39, below Monday’s when-issued closing price of $52.08. Shares can trade on a when-issued basis before they are officially distributed, though the market is relatively illiquid as trades can’t be settled in that setting since the shares haven’t been officially issued. About 52,000 Vimeo shares traded on a when-issued basis in aggregate, compared with more than 9 million that changed hands once trading began Tuesday. Vimeo’s public debut comes after it was spun out of InterActiveCorp.
IAC,
+1.37%,
with IAC shareholders receiving 1.6235 shares of Vimeo for each IAC share that they owned in a distribution that took place after the close of business Monday. The company finished Tuesday’s session with a market value of about $8 billion, above the $6 billion valuation that IAC said Vimeo fetched in January after a private investment. IAC Chief Financial Officer Glenn Schiffman said that Vimeo’s Tuesday stock price was a “smashing accomplishment for the team and shareholders” given the higher valuation it implied relative to the January equity investment. Vimeo is the 11th company to come public out of IAC and it grew revenue 57% to $89.4 million in its latest quarter.

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View more information: https://www.marketwatch.com/story/vimeo-begins-trading-as-standalone-company-today-2021-05-25

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