Chegg (CHGG) IPO Bombs on First Day
Shares of Chegg Inc. (CHGG) were trading at $9.42 per share on Thursday, down -0.26 or -2.69 percent. The loss on Thursday follows a dismal first day of trading for the new issue, which saw the stock drop -22.6 percent on Wednesday, the largest first day loss for an IPO this year. The Chegg IPO follows the 70 percent first-day run up on Twitterâ s (TWTR) stock after it had its initial public offering last week.
The Chegg stock was issued at a price of $12.50 per share and the company managed to sell 15 million shares at that price on Tuesday night, at the current price, the stock is almost 33 percent lower.
Santa Clara, California based Chegg Inc. was founded eight years ago and is an academic company specializing in online textbook rentals in both hard copy and digital format, catering primarily to colleges. The companyâ s name is a contraction of â
Published on Nov 14, 2013
By Jay Hawk