A Troubled Newspaper Creates 200% Windfall With Digital IPO
- Private equity firm bought Toronto Star parent last year
- After IPO, it holds C$180 million stake in VerticalScope unit
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The buyers of the Toronto Star newspaper have tripled their money on the investment in less than a year after completing an initial public offering of a little-known online publishing division.
The IPO of VerticalScope Holdings Inc., a former unit of Torstar Corp. that runs websites for hobbyist communities such as wood-workers and motorcyclists, raised about C$125 million ($103 million). The shares closed at C$22.95 in the first day of trading on Tuesday, valuing the remaining stake held by private equity firm NordStar Capital LP at C$180 million.