|
Hits, misses in IPO market
|
 |
August 3, 2000: 6:00 p.m. ET
Resonate leads IPO pack, 4 others gain while 4 fall below offer price
|
NEW YORK (CNNfn) - The new issues market produced mixed results Thursday, with 9 companies making their debut. Resonate Inc. emerged as the top deal, surging 72 percent, while 4 other deals produced moderate premiums and four others failed to get off the starting block.
Of the gainers, SignalSoft Inc. climbed 29 percent, Rosetta Inpharmics rose 28 percent, Deltagen Inc. gained 27 percent and Inspire Pharmaceuticals jumped 25 percent while Versicor Inc., iAsiaWorks Inc., ScreamingMedia.com Inc. and eRoom System Technologies all fell below their offer price.
 Resonate, which develops e-business software, rose 15-1/8 to 36 1/8. Sunnyvale, Calif.-based Resonate (RSNT: Research, Estimates) was expected to have a strong aftermarket performance as momentum for the deal gathered this week. This culminated when Resonate priced $2 above its expected range.
"This was picked to be a good deal and that's what it's turning out to be," said John Fitzgibbon, analyst with WorldFinanceNet.com.
According to analysts, a low number of shares on offer often equals a strong first-day performance.
Resonate priced 4 million shares at $21 each Wednesday night via underwriters Goldman Sachs. The company boosted its deal to 4 million at $17-to-$19 from the originally anticipated 3 million at $15-to-$17.
SignalSoft an IPO sleeper
SignalSoft Inc., whose software enables carriers to determine the location of mobile users, followed Resonate's lead climbing 4-7/8 to 21-7/8
Boulder, Colo.-based SignalSoft (SGSF: Research, Estimates) raised $74.8 million by selling 4.4 million shares at $17, the top of its range.
"We were caught off guard by the opening premium," said David Menlow, president of IPOFinancial.com.
Menlow said lead underwriter Salomon Smith Barney has struggled with deals of late and pricing at the top of its range was not an overwhelming sign that the stock would see an opening day premium.
"Our issue here is controlling delivery of voice-based data," said Menlow. "This is nothing revolutionary ... but the market is moving from back to perception versus reality and looking at what promise do (the companies) have."
Biotechs continue gaining
Four biotechnology-related IPOs began trading Thursday with all but one posting strong gains.
Deltagen Inc. rose 4 to close at 19 after raising $105 million on Wednesday. The company priced 7 million shares at $15 each, the top of its expected range, through underwriters led by Salomon Smith Barney. Menlo Park, Calif.-based Deltagen (DGEN: Research, Estimates) provides technology that converts genetic data into mammalian gene function information that it says will speed the development of drugs.
Rosetta Inpharmics Inc, jumped 3-7/8 to 17-7/8. Rosetta (RSTA: Research, Estimates) raised $100.8 million after pricing 7.2 million at $14 each through underwriters led by Lehman Brothers. Kirkland, Wash.-based Rosetta is involved in the field of informational genomics that uses gene mapping and technology to speed the development of drugs.
Inspire Pharmaceuticals also produced a strong gain, climbing 3 to 15. Durham, N.C.-based Inspire (ISPH: Research, Estimates) raised $66 million when it priced 5.5 million shares at $12 each through underwriters led by DB Alex. Brown. Inspire develops drugs to treat diseases such as lung disease and chronic bronchitis.
However, Versicor Inc. emerged as the only biotech-related deal to trade below its offering price, falling 1-3/32, or 10 percent, to 9-29/32. Fremont, Calif.-based Versicor (VERS: Research, Estimates), which focuses on drugs to treat bacterial and fungal infections, priced 4.6 million shares at $11 per share, the bottom of its expected range, through underwriters led by Lehman Brothers.
Worst of the rest
Three other deals also fell below their offer price.
Internet service provider, iAsiaWorks Inc. posted the strongest loss, plunging 3-1/2, or 27 percent, to 9-1/2 after pricing at the bottom of its range. The San Mateo, Calif.-based company raised $117 million after pricing 9 million shares at $13 each via underwriters led by Goldman Sachs. IasiaWorks (IAWK: Research, Estimates) focuses on helping businesses extend their presence in Asia.
ScreamingMedia.com Inc. slipped 1-1/2, or 14 percent, to 10-1/2. ScreamingMedia.com (SCRM: Research, Estimates) sold 5 million shares at $12 each, the mid-point of its $11-to-$13 price range, via underwriters Credit Suisse First Boston. The New York-based company offers technology that collects digital content from different content providers and distributes it to customer Web sites.
Lastly, eRoom System Technologies Inc. (ERMS: Research, Estimates), which makes computerized systems for hotels and motels, dropped 3/8, or nearly 6 percent, to 6-1/8. Las Vegas-based eRoom Systems priced 1.8 million shares at $6.50 each, below its range, through New York underwriters Donald & Co. 
|
|
|
|
|
 |
|
