Education Management Shares Rise In IPO Debut

TALI ARBEL

NEW YORK (AP) — Education Management Corp. shares soared almost 25 percent Friday in their debut in an initial public offering after being priced at the low end of their proposed range.

The stock jumped $4.48, or 24.9 percent, to $22.48 by midday on volume of almost 5 million shares.

On Thursday night, shares were priced at $18 a share, at the bottom of the company's proposed range of $18 to $20.

Many education stocks have seen gains in the past two years as the tough economy drives more Americans to bulk up their resumes. This is the third for-profit higher education IPO since November, following online educators Grand Canyon Education Inc. in November and Bridgepoint Education Inc. in April.

Grand Canyon shares are up about 43 percent since then, while Bridgepoint shares have gained about 40 percent.

The market for initial public offerings took a big hit in 2008 amid the recession. A recent broad rally in equities and a sense that investors' appetites are again whetted for IPOs is prompting a range of companies to go public after long delays, analysts say.