Watertown-Based Bright Horizons Sees It’s Stock Soar Following IPO
NEW YORK (AP) — Shares of child care services provider Bright Horizons jumped more than 28 percent in their first day of trading on the New York Stock Exchange.
The Watertown, Mass., company’s stock climbed $6.17, to $28.17. It opened at $27.75.
Bright Horizons Family Solutions Inc. raised $222.2 million in an initial public offering of 10.1 million shares.
The stock was priced at $22 apiece, above the expected price range of $19 to $21 per share. That suggested healthy demand from investors. The banks managing the deal may buy another 1.5 million shares, increasing the funds raised.
Bright Horizons said in a regulatory filing that it will use the IPO proceeds to repay debt. Any remaining proceeds will be used for working capital and general corporate purposes.
The company is being taken public by private equity firm Bain Capital LLC, which bought it in 2008 for $1.3 billion. Bright Horizons had traded on the Nasdaq from 1998 until 2008.
The company has more than 750 child care and early education centers.
Its stock is trading under the “BFAM” ticker symbol.
Copyright 2013 The Associated Press.