Cinemark stock down on first day
EmptyNEW YORK -- Shares of Cinemark Holdings Inc., the third-largest U.S. movie theater operator, declined slightly in their market debut Tuesday, closing at $18.91 after going as low as $17.74 and as high as $19.30 intraday.
That gave the company a market capitalization of $1.75 billion, according to Bloomberg.
Shares of the Plano, Texas-based company had priced at $19 each late Monday, at the top of the previously set range of $17-$19.
The stock then started trading Tuesday on the New York Stock Exchange under ticker symbol "CNK."
In its initial public offering, Cinemark sold 28 million shares, including nearly 13.89 million shares of its own common stock, with certain stockholders offering an additional 14.11 million shares. The IPO raised about $388 million for the company, which Cinemark plans to use to buy back or repay debt.
Lead underwriters for the IPO were Lehman Bros., Credit Suisse Securities, Merrill Lynch and Morgan Stanley. The underwriters have the option to buy an additional 2.8 million shares to cover overallotments.
Cinemark operates 4,488 screens in nearly 400 movie theaters in the U.S. and Latin America.
Cinemark's IPO was less successful than the public float earlier this year of cinema advertising firm National CineMedia Inc., which it owns together with fellow theater circuit operators AMC Entertainment and Regal Entertainment Group.
National CineMedia went public in February in an $882 million IPO. Its stock jumped 22% to $25.67 on its first day. On Tuesday, the shares closed down 1.3% at $26.96, giving it a $1.13 billion market capitalization.
AMC, the second-largest U.S. film theater group behind Regal, also is planning an IPO on the New York Stock Exchange under ticker symbol "AC."