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Demand Media Share Price Surges After IPO

01/26/11 11:05 AM ET   AP

Demand Media

NEW YORK — Shares of Demand Media Inc. are surging after the online content publisher priced its initial public offering at a higher-than-expected price of $17 per share.

The shares gained $6.80, or 40 percent, to $23.80 in morning trading on the New York Stock Exchange under the ticker "DMD."

The IPO raised about $151 million in gross proceeds.

Earlier Wednesday, Demand Media increased the size of its offering to 8.9 million shares from 7.5 million. It previously expected the shares to price between $14 and $16 apiece.

The Santa Monica, Calif., company employs a network of more than 13,000 freelancers who churn out web content – namely, instructional articles – primarily on its ehow.com website.

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Filed by Jack Mirkinson  |