Can't help but notice that the new ipo "globspan" rockets to 32 after opening at 15.
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NEW YORK, June 23 (Reuters) - GlobeSpan Inc. shares doubled Wednesday in the
component developer's market debut, signaling hearty investor appetite for a piece of the
exploding business of speeding up Internet connections through ordinary phone lines.
Stock of the developer of integrated circuits used to enable high-speed data transmission over regular copper phone lines
rocketed up $17 to $32 midday on the Nasdaq Stock Market after opening at $15.
GlobeSpan's performance came as no surprise to many market watchers after the Red Bank, N.J.-based company's initial
public offering on Tuesday priced above its $9 to $11 range at $15 a share.
''There is no surprise,'' said Vincent Slavin, an analyst at Cantor Fitzgerald. ''It is a hot IPO. There is good demand for
quality companies.''
GlobeSpan, whose chip sets installed at each end of a phone line help data travel 100 times faster than current modem
technology, raised $48.75 million in its offering of 3.25 million shares.
The company plans to use the IPO proceeds to repay some debt and for general corporate purposes.
The market for equipment that boosts a common phone line's move data quickly will increase seven-fold by 2003, according to
Lee Doyle, a vice president at research firm International Data Corp. This method of data transmission is known as advanced
digital subscriber line technology.
''The telecom focus adds another angle to it,'' said Steve Harmon at Internet.com of the IPO. ''Investors are looking at next
generation telecom and infrastructure companies as the need for faster data (transmission) increases. That's driving the gains
in some of these stocks.''
Despite the growth prospects of the industry, GlobeSpan still faces competition from better-known players and the threat that
a rival turbo-charged access technology could dominate.
Some analysts believe a technology that provides access to the Internet through cable TV is slightly ahead of DSL in terms of
converts.
The lead underwriter in the offering was BancBoston Robertson Stephens.
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whats wrong with westhell??????????
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