Online financial site TheStreet.com’s (Nasdaq: TSCM) initial public offering was welcomed on Wall Street in a major way on Tuesday. TheStreet.com stock more than tripled, rising 41 points to close at 60 in the first day of trading. The rise means the company is now valued at about $1.6 billion (US$). Co-founder Jim Cramer, a well-known hedge-fund manager and Wall Street guru, has a 14 percent stake in the company that was worth $240 million after the markets closed Tuesday.
Wall Street values TheStreet.com at twice as much as rival financial site Marketwatch (Nasdaq: MKTW), which also had a knockout IPO earlier in the year. Marketwatch went public at $17 in January and closed at $97.50 on its first day of trading, a jaw-dropping 474 percent rise, but the stock has since retreated. Shares of Marketwatch closed at 65 on Tuesday.
What’s surprising is that TheStreet.com saw such a sharp climb despite the fact analysts are saying that institutional interest in the offering was limited. That means most of the buying and selling was done by individuals. More than 13 million shares of TheStreet.com changed hands on Tuesday.