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Wednesday July 14 3:04 PM ET
TIBCO Software Surges In Market Debut
NEW YORK (Reuters) - Shares of TIBCO Software Inc. more than doubled in their stock market debut Wednesday, rising as high as $40 from an offering price of $15.
The Palo Alto, Calif.-based company, whose products allow computer applications to communicate efficiently over the Internet, raised $109.5 million after pricing its initial public offering (IPO) of 7.3 million shares at the top of its increased expected price range of $14 to $15.
Irv DeGraw, research director at WorldFinanceNet.com, said of the company, "It is part of the business-to-business commerce, which is a highly valued sector right now. Plus, among the players that are out there, they are one of the strongest. They are a $53 million operation and have high-visibility customers. They are among the better ones."
TIBCO is majority-owned by Reuters Group Plc, the global news and information company.
Reuters previously said it would not receive any proceeds from the IPO and would remain the single largest shareholder in TIBCO.
Earlier this month TIBCO extended its relationship with Yahoo! Inc. by offering the Internet firm $4 million of TIBCO common stock. It also offered 500,000 shares to Sun Microsystems Inc. (Nasdaq:SUNW - news)
Research firm Yankee Group sees annual revenues from applications and data-integration software reaching $5.0 billion by the end of 2001, compared with $1.6 billion in 1997.
TIBCO posted a net loss of $8.96 million, or 43 cents a share, for the six months ended May 31, 1999.
TIBCO shares were up $22 at $37 shortly before midday Wednesday on the Nasdaq Stock Market.
Goldman Sachs was the lead underwriter on the IPO. |
