America Online Latin America (Nasdaq: AOLA) edged up 7/16 to 8 7/16 in its first day of trading Tuesday. The company, a joint venture of America Online Inc. (NYSE: AOL) and the Cisneros Group, sold its 25 million shares at $8 apiece, the low end of an already-lowered range.
The company says it aims “to become the leading provider of interactive services in Latin America.” Yet investors are skeptical about the company’s prospects. The field is “very competitive,” with “high barriers” to new entrants, Jeff Hirschkorn, senior analyst at IPO.com, said ahead of the deal.
AOL Latin America originally planned to sell its shares for $15 to $17 each, but last week lowered the price to $8 to $10.