NEW YORK, Dec 7 (Reuters) - Shares of AirNet Communications
Corp. <ANCC.O> were the highest percent gainers on the Nasdaq
in midday trading Tuesday, after the company raised $77 million
from its 5.5 million share initial public offering.
Shares of the Melbourne, Fla.-based wireless company opened
at $35 a day after pricing at $14, above range, through Salomon
Smith Barney. Shares last traded up 28-1/2 to 42-1/2, a gain of
over 200 percent.
AirNet provides wireless base stations and other
telecommunications equipment designed to allow service
operators to offer wireless high-speed Internet and voice
services to mobile subscribers.
Specifically, AirNet provides base stations to support the
Global Standard for Mobile Communications, a system of mobile
voice and data transmissions.
Wireless has been a sector of heavy investor interest,
buoyed by Nasdaq climber Qualcomm Inc. <QCOM.O> and the recent
announcement by AT&T Corp. <T.N> to spin off its own wireless
unit. Analysts see AirNet's position in the industry as helping
its successful debut.
"(There is) a lot of interest for all things wireless,"
said Kenan Pollack at Hoover's Online, the online division of
Hoover's, which offers an electronic database of companies.
"It's a huge growth market...(with) a lot of interest and
excitement."
Jeff Hirschkorn, senior market analyst at IPO.com, agreed
that AirNet is benefiting from a hot wireless market, but
voiced long-term concerns for the company.
Citing AirNet's low-profile customer base, Hirschkorn said,
"You hear of all these small names ... down the road, where (is
AirNet) going to go?"
According to AirNet's filing with the Securities Exchange
Commission, customers such as Message Express Co. and Panhandle
Telecommunications Systems, Inc. accounted for 10 percent or
more of the company's revenue for the nine months ended Sept.
30 or the year ended Dec. 31, 1998.
For the nine months ended Sept. 30, AirNet had net revenues
of over $11 million and a net loss of about $11.3 million.
There are over 22 million shares outstanding following the IPO.
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