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Microtune screams, up 90%
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August 4, 2000: 7:15 p.m. ET
Bruker climbs 77%; three other deals rise; three more fail to impress
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NEW YORK (CNNfn) - Microtune Inc., a provider of radio frequency tuners, led a pack of eight new issues Friday, surging nearly 90 percent. While four other deals produced solid gains, three initial public offerings were not as lucky.
Biotech tools company Bruker Daltronics climbed 77 percent; Giganet Ltd., a maker of wireless Web equipment, climbed 39 percent; drug developer 3-Dimensional Pharmaceutical rose nearly 28 percent; and Innovative Solutions, a maker of aircraft products, gained nearly 11 percent.
EXE Technologies Inc., a developer of supply chain software, inched up 1.5 percent, while Crosswave Communications Inc., a provider of data communication services in Japan, barely stayed afloat, gaining only 0.45 percent. Lastly, network server maker Lantronix Inc. plummeted 20 percent.
The mixed resulted ended a hectic time for the IPO market. Twenty-nine deals raised $2.9 billion, marking the busiest week for new issues since August 1996 when 32 deals priced, according to CommScan, a New York-based investment banking research firm.
The screamer
Radio frequency tuner company Microtune Inc. emerged as the Friday's top deal, jumping 14-1/8 to 20-1/8.
Plano, Texas-based Microtune (TUNE: Research, Estimates) priced 4 million shares at $16 each, a dollar above its expected range, through underwriters led by Goldman Sachs.
 The company makes single-chip radio tuners and transceivers used in such things as telephone systems and cable modems.
"This is a nice compact offering and the environment was actually quite positive for IPOs," said Yousef Haque, IPO analyst with 123Jump.com.
But Haque noted Microtune's first-day volume was fairly low, which may signal disinterest and influence future performance of the stock.
Biotech's continued rise
Two biotechnology-related deals continued the strong gains made by the sector. On Thursday, three out of four biotech-related deals making their debuts posted strong gains.
Billerica, Mass.-based Bruker jumped 10-1/16 to 23-1/16. The biotech tools company makes devices that provide molecular information on a given sample.
"This is just another case of a company that is in a hot sector," said John Fitzgibbon, analysts with WorldFinanceNet.com. "The IPO market is a collections of the haves and the wish-they-weres."
Bruker (BDAL: Research, Estimates) raised $104 million after pricing 8 million shares Thursday at $13 each through underwriters led by UBS Warburg. The company had expected to price 7.5 million shares at $10-to-$12 each.
Bruker had revenue of nearly $64 million in 1999, and earned about $1.25 million.
Protein research company 3-Dimensional Pharmaceutical followed Bruker's lead, rising 4-1/8 to 19-1/8.
The Exton, Penn.-based company, which makes systems for identifying protein-related drug targets, raised $75 million pricing 5 million shares at $15, up from the originally filed 4 million shares at $13 to $15 a share.
In 1999 3-Dimensional (DDDP: Research, Estimates) had revenues of nearly $4.5 million, but lost nearly $16 million.
Wireless and airplanes
Tel Aviv, Israeli-based Giganet Ltd., a developer of wireless Web equipment, jumped 5-1/2, or 39 percent, to 22-1/2 on its first day, after raising $85 million.
Giganet (GGNT: Research, Estimates) priced 5 million shares at $17, much higher than its expected range of between $14 and $16, through underwriters led by Morgan Stanley Dean Witter. The company initially filed to sell 5 million shares at $12 to $14 each.
Innovative Solutions & Support (ISSC: Research, Estimates) rose 1-3/16 to 12-3/16. Malvern, Penn.-based Innovative sold 3 million shares at $11 each, the mid-point of its expected range, via underwriters Friedman Billings Ramsey. Price talk was 3 million at $10-to-$12 a share.
The profitable company makes and designs aircraft products such as flight information computers, electronic displays and advanced monitoring displays.
Flat as a pancake
Crosswave Communications Inc. failed to attract investors despite pricing at the top of its range. Shares rose 1/16, 0.45 percent, to 14-1/16.
Shares of Crosswave were priced at $14 a share, at the high end of the estimated price range, but the stock stayed barely afloat.
The company, which is owned by Sony Corp., Toyota Motor Corp. and Internet Initiative Japan raised $243.5 million by selling 17.392 million American Depositary Receipts, or 86,960 common shares.
Sony and Toyota each own 30 percent of Crosswave (CWCI: Research, Estimates), and IIJ owns 40 percent of the company.
"The physical location is hurting this deal," Fitzgibbon said. "The Far East has fallen out of investors' favor."
EXE Technologies Inc. barely rose above its offering price, edging up 1/8 to 8-1/8. EXE Technologies Inc. raised $64 million after pricing 8 million shares at $8 per share. The company had planned to offer 7.25 million shares at $7-to-$9 each, down from the originally planned 10 million shares at $11-to-$13.
EXE (EXEE: Research, Estimates) develops fulfillment, distribution and warehousing software for e-commerce and traditional companies such as barnesandnoble.com (BNBN: Research, Estimates), Ford and K-Mart.
Donaldson Lufkin & Jenrette and Solomon Smith Barney led the deal.
Lastly, Irvine, Calif.-based Latronix Inc. (LTRX: Research, Estimates) received the worst reception, quickly falling below its offer price.
The network server company dropped 2 to 8 after the company sold 6 million shares at $10. The company had planned to offer 9 million shares at $10 to $12 a share, down from the originally filed $14 to $16 range. 
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