Blue Nile Shares Rise 39% on Debut
Shares of online jeweler Blue Nile Inc. sparkled in their debut Thursday, rising 39% to $28.40 on Nasdaq.
The jump came after the merchant, which provides a build-your-own diamond ring service, had its initial public offering priced at $20.50 a share -- above the high end of its estimated pricing range of $17.50 to $19.50.
It was the first IPO in the retail sector to be priced above its estimated range since Aeropostale Inc.’s offering in May 2002, according to Thomson Financial.
“The Blue Nile gain is almost three times the average IPO first-day gain, which is about 12% or 13%,” said Richard Peterson, chief market strategist at Thomson Financial.
Seattle-based Blue Nile reported 2003 revenue of $128.9 million and net income of $27 million. In the first quarter of 2004, it reported revenue of $35.8 million and net income of $1.9 million.
The company has the backing of well-known venture capital firms, including Paul Allen’s Vulcan Ventures.
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