Brightcove Inc., a Cambridge company known for its Internet video platform and online video tools, rose in its first day of trading.
The company had priced an initial public offering of 5 million shares of its common stock at a price to the public of $11 per share.
At mid-day, shares were trading at $14.48, up nearly 32 percent. At $11 per share, the offering was projected to raise about $55 million.
Shares trade under the symbol “BCOV” on the Nasdaq Global Market.
The company added in a press release that it has granted the underwriters a 30-day option to purchase up to 750,000 additional shares of common stock to cover over-allotments, if any.
Morgan Stanley & Co. LLC and Stifel, Nicolaus & Company, Inc. are acting as joint book-running managers for the offering, and RBC
Capital Markets LLC, Pacific Crest Securities LLC, and Raymond James & Associates Inc. are acting as co-managers for the offering.
Brightcove faces a tough market for initial public stock markets, which are often referred to as IPOs. As of the start of this week, there have been 16 IPOs priced so far in 2012, about 30 percent fewer offerings than at this point last year, according to Renaissance Capital, a research firm that tracks new stock sales. This year’s crop has raised about $1.5 billion, compared with $8 billion by this time in 2011. The number of companies that started the process of going public this year but remain in the IPO pipeline is down modestly.
Brightcove filed for the IPO in August. Its 2011 revenue was $63 million, but the company had a net loss of $17 million.
Founded in 2004 by Jeremy Allaire, Brightcove anticipated the growth of video on the Internet and has targeted its services, which include editing software and the hosting of online videos, to companies that are interested in adding video to their websites. Because creating and hosting online videos demands specialized technical expertise and the ability to store and serve large video files, many companies prefer to pay a company like Brightcove rather than host video on their own servers.
Brightcove has a number of media customers, including The New York Times Co., The Boston Globe, The Weather Channel, and Conde Nast. The Times Co., which owns the Globe and Boston.com, also holds a small stake in Brightcove. The company’s customer list also includes many nonmedia firms that use videos on their websites. Macy’s, General Motors, and Staples use Brightcove’s services to post marketing and informational videos on their sites.
Chris Reidy can be reached at email@example.com.