CBS Outdoor Stock Rises in IPO
The stock of CBS Outdoor Americas, the outdoor advertising unit of entertainment conglomerate CBS Corp., rose above its IPO price in its market debut Friday.
The IPO will lead to CBS Corp. fully splitting off the outdoor business later in the year to focus further on its entertainment businesses.
Late Thursday, the company, led by CEO Leslie Moonves, had priced 20 million shares of CBS Outdoor at $28 each. They started trading Friday on the New York Stock Exchange under the ticker symbol "CBSO" at $30.10 and went as high as $30.47.
As of 11 a.m. ET, the stock was up 6.6 percent at $29.84.
CBS Corp. will now own approximately 83 percent of CBS Outdoor, or approximately 81 percent if IPO underwriters exercise options to purchase additional shares in full.
CBS plans to divest its shares through a tax-free split-off later this year. After that, CBS Outdoor plans to convert into a real estate investment trust.
Time Warner is also in the process of focusing on its entertainment assets via the upcoming spin-off of its Time Inc. publishing unit, which is expected to happen during the second quarter.