Stock Watch: ValueClick IPO Gets Lukewarm Reception

ValueClick, Inc. edged higher Friday, its first day of trading, making it one of the few Internet issues to gain ground that day. The stock rose 1 15/16 to 20.

Still, some observers thought the shares would go higher. Underwriters Goldman, Sachs & Co. had increased the price range ahead of the deal, which is usually a sign of strong demand, said Jeff Hirschkorn, senior analyst at “The market conditions are really rocky” right now for Internet-related IPOs, he said. “If this was six months earlier, ValueClick would have been a real steady performer.”

The Carpenteria, California-based company sold 4 million common shares at $19 each through Goldman, Sachs & Co. Proceeds will be used for expanding sales and marketing activities, improving technology, and possibly for acquisitions and international expansion.

ValueClick is an Internet advertising company that focuses on the “cost-per-click,” or CPC model, in which the advertiser pays only when a reader clicks on its banner advertisement.

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