RealD shares jumped nearly 22 percent Friday, their first day of trading...

$18.87 to a high of $21. RealD plans to use the $82.6 million in net proceeds from the offering to repay $25.1 million in loan debt and the rest for general corporate purposes, including “investments in technology,” the company said Thursday just after the SEC declared the IPO effective. RealD “may also use a portion of the net proceeds to acquire complementary businesses and technologies,” the company said. Despite “tremendous demand” for the RealD IPO “that has now spilled over into the aftermarket,” RealD shares are overvalued, BTIG analyst Richard Greenfield said in a research note Friday. “While we sense quite a bit of investor excitement around the RealD IPO, we worry that investors do not appreciate the longer-term risks to RealD’s business model,” Greenfield said. He cited the high cost to theater owners of licensing the RealD system. “RealD will need to lower license fees or its exhibition partners will go elsewhere over time,” Greenfield said. And RealD’s 3D box office forecasts are “too aggressive,” he said. “While we believe 3D movie-making is here to stay and will increase notably over the coming year, we believe 3D attendance per screen is highly skewed by the novelty of 3D and the limited screens available today. We expect RealD’s gross license fees per screen per year to decrease consistently going forward, as there will not be enough ‘good’ 3D movies to maintain recent attendance per screen levels. Also, remember, if 3D proves to be more of a ‘fad’ than investors currently expect, RealD is taking the revenue risk as it is not selling systems; RealD’s entire business is built on a licensing model that requires continued strength in 3D attendance."