Thu, Oct 28, 2004
Source UPI
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GLENDALE, Calif. -- DreamWorks Animation in Glendale, Calif., surged 34 percent in value Thursday in its market debut on the New York Stock Exchange. DreamWorks Animation is principally devoted to developing and producing computer generated animated feature films.
The stock opened at $39.50, dipped to $36.40 and rose back to $39.50 as more than 14 million shares changed hands. The IPO priced 29 million shares at $28 a share. Wall Street analysts had estimated its shares would price in the range of $23 to $25 per share. DreamWorks Animation's initial public offering was expected to raise more than $812 million in the first IPO by a major movie studio in seven years. Earlier this month, the company debuted "Shark Tale," a story about gangster fish, and it has become a hit generating nearly $140 million at U.S. and Canadian box offices. That follows the blockbuster success of "Shrek 2," which has earned about $850 million globally since its May debut. The animation company will use cash from the IPO to pay off debt and fund production. Its aggressive film plans call for two computer-animated movies a year, which no studio has done. DreamWorks stock trades on the New York Stock Exchange under the symbol DWA. Copyright 2004 by United Press International
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