2U shares up, Aerohive down on market debuts

2U shares rise while Aerohive Networks declines on first day as publicly traded companies

Associated Press

Shares of online education provider 2U are rising while those of Aerohive Networks are falling in their first day as publicly traded companies.

2U Inc.'s stock added $1.07, or 8.2 percent, to $14.07 in morning trading on the Nasdaq, while Aerohive's shares declined 96 cents, or (9.6 percent, to $9.04 on the New York Stock Exchange. Meanwhile, the broader markets were trading higher.

2U said its initial public offering of approximately 9.2 million shares priced at $13 per share, at the high end of the expected price range of $11 to $13 per share.

2U is offering 8 million shares, while selling stockholders are offering about 1.2 million shares. 2U won't receive any proceeds from shares sold by the selling stockholders.

The company and certain selling stockholders are giving the underwriters a 30-day option to buy up to an additional 1.4 million shares.

The Landover, Md., company was founded in 2008. It provides software to colleges and universities to help them connect with and hold online classes. 2U said in a regulatory filing that it posted a loss of $28.3 million for 2013 on revenue of $83.1 million, which was up almost 50 percent from its 2012 revenue.

2U's stock is trading under the "TWOU" ticker symbol.

Looking at Aerohive Networks Inc., the company raised $75 million from its IPO of 7.5 million shares priced at $10 each. That's the midpoint of the projected price range of $9 to $11 per share.

Aerohive, a developer of a cloud-managed mobile networking platform, is giving the underwriters a 30-day option to buy up to an additional 1.1 million shares.

The Sunnyvale, Calif., company said in a regulatory filing that its 2013 revenue totaled $107.1 million, up from $71.2 million in 2012.

The stock is trading under the "HIVE" ticker symbol.

Elsewhere, shares of CBS Outdoor Americas Inc. climbed in their first day on the New York Stock Exchange, while Everyday Health Inc.'s stock declined.

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