May 11 (Bloomberg) -- FriendFinder Networks Inc., the publisher of Penthouse magazine, plunged as much as 22 percent in Nasdaq Stock Market trading after selling shares at the low end of the range in its initial public offering.
The Boca Raton, Florida-based operator of websites including AdultFriendFinder.com and Cams.com tumbled $2.23 to $7.77 as of 12:35 p.m. New York time. FriendFinder raised $50 million in its IPO yesterday, selling 5 million shares at $10 each after offering them for as much as $12 apiece.
FriendFinder’s IPO follows an attempt last year to raise as much as $240 million and plans in 2008 for an offering of as much as $460 million, U.S. Securities and Exchange Commission filings show. The company is using proceeds to repay debt, according to the prospectus.
The company, which had outstanding debt of $542.5 million as of April 15, had accumulated net losses of $210 million in the five years through 2010, the prospectus showed. Net revenue for the year ended Dec. 31 was $346 million, while the net loss was $43.2 million, according to the filing.
Imperial Capital Group Inc. of Los Angeles and Ladenburg Thalmann Financial Services Inc. of Miami led the offering.
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