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Blue Nile Shares Rise 39% on Debut

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From Reuters

Shares of online jeweler Blue Nile Inc. sparkled in their debut Thursday, rising 39% to $28.40 on Nasdaq.

The jump came after the merchant, which provides a build-your-own diamond ring service, had its initial public offering priced at $20.50 a share -- above the high end of its estimated pricing range of $17.50 to $19.50.

It was the first IPO in the retail sector to be priced above its estimated range since Aeropostale Inc.’s offering in May 2002, according to Thomson Financial.

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“The Blue Nile gain is almost three times the average IPO first-day gain, which is about 12% or 13%,” said Richard Peterson, chief market strategist at Thomson Financial.

Seattle-based Blue Nile reported 2003 revenue of $128.9 million and net income of $27 million. In the first quarter of 2004, it reported revenue of $35.8 million and net income of $1.9 million.

The company has the backing of well-known venture capital firms, including Paul Allen’s Vulcan Ventures.

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