Shares of Playboy Enterprises (NYSE: PLA) soared more than 12.5 percent on Monday, climbing 2-15/16 to 26-5/16 after Playboy’s online division, which includes a variety of adult-oriented content and e-commerce offerings, filed for an initial public offering. This news was no surprise because Playboy had announced in September that it was planning to take its online arm public. Investors seem to be banking on the IPO — which could raise $50 million and is expected to generate more than its fair share of attention — unlocking some of the value in Playboy Enterprises’ stock.
Indeed, investing in Playboy Enterprises might be a wise way to play the IPO. After all, Playboy is a profitable company with a big-time brand name, and its stock remains significantly off its 52-week high of 36-1/8. What’s more, America Online’s merger with Time Warner could lead to similar deals that make investors take an even closer look at all sorts of media companies.