Portal site Looksmart (Nasdaq: LOOK) pulled off a big initial public offering on Wednesday. The IPO priced 7.7 million shares at $12 and closed its first day of trading up more than 44 percent, gaining 5-5/16 to 17-5/16. The IPO raised $92.4 million, but that was actually a bit disappointing for the company.
Looksmart had originally planned on offering 12 million shares, which was then lowered to 9 million shares before being lowered again to 7.7 million shares. The stock’s showing on Friday was a good sign, but the market for portal sites is a bit crowded. It remains to be seen if the smaller players like Looksmart will attract the same kind of attention and investor enthusiasm that surrounds stocks like Yahoo!.