Shares of DreamWorks Animation rose 40 per cent on their Wall Street debut today after the animated film maker's initial public offering raised a higher-than-expected $812 million.
The shares rose to $39.25 shortly after opening for trading on the New York Stock Exchange, up $11.25 from their IPO price of $28.
DreamWorks Animation had estimated its shares would price in a range of $23 to $25.
The deal comes as the producer of computer animated films rides high on the box office success of its Shark Tale, which follows the summer smash hit Shrek 2.
The offering separates the animation group from the live-action unit of DreamWorks, which was formed a decade ago by moguls Steven Spielberg, David Geffen and Jeffrey Katzenberg.
According to regulatory filings, DreamWorks Animation sold 25 million shares in the IPO, while stockholders sold 4 million shares. The animation company will use cash from the IPO to pay off debt and fund production. The lead underwriters of the IPO were led by Goldman Sachs and JPMorgan.