March 28 (Reuters) - Shares of CBS Outdoor Americas Inc rose 9 percent in their market debut, valuing the outdoor advertising company carved out of broadcaster CBS Corp at about $3.65 billion.
CBS Outdoor raised about $560 million after its initial public offering was priced at $28 per share, the top end of the expected price range.
The company’s shares opened at $30.10 and touched a high of $30.42 in early trading on the New York Stock Exchange on Friday.
CBS Corp’s stake in CBS Outdoor fell to 83 percent after the offering. Its holding will drop to about 81 percent if underwriters fully exercise their option to buy additional shares.
CBS Corp plans to divest its shares through a tax-free splitoff later this year, after which CBS Outdoor will trade as a real estate investment trust (REIT).
That will allow CBS Outdoor to avoid paying corporate-level income taxes if it distributes at least 90 percent of its taxable income to shareholders in the form of dividends.
Goldman Sachs, BofA Merrill Lynch, J.P. Morgan and Morgan Stanley are lead underwriters of the offering. (Reporting by Tanya Agrawal in Bangalore; Editing by Savio D‘Souza)