Glenn, forget about Amzn...its all about infrastructure. That's why Accl and Onis did so well on their IPO's.
>NEW YORK (Reuters) - Shares in Accelerated Networks Inc. (ACCL.O), which produces and sells Internet equipment, more than tripled in price on its stock market debut as investors reaffirmed their attraction to companies that provide the plumbing for the Web.
The company's shares closed up 32-7/8 at 47-7/8 in trading on the Nasdaq market, against its initial public offer price of $15. The stock traded as high as 52-1/2.
The 220 percent rise on Friday was the biggest first-day gain for a Nasdaq stock since ONI Systems Corp. (ONIS.O), which is also an Internet infrastructure company, on June 1. In its first day of trading, ONI Systems shares closed up 57-9/16 at 82-9/16, a gain of more than 230 percent.
Accelerated Networks' gains contrasted with the slide in shares in Internet retailers on Friday. The stock of top Internet retailer Amazon.com Inc. (AMZN.O) plunged 20 percent to a 52-week low as analysts questioned the money-losing company's credit-worthiness and revenue growth prospects, triggering declines elsewhere in the sector.
For much of this year, companies that provide the equipment that runs the Internet have been more in favor than those that use it to sell their products or provide content.
Moorpark, Calif.-based Accelerated Networks develops and sells products that enable Internet service providers to offer bundled voice and data services over a single broadband network.
``(Infrastructure) is where the action is,'' said John Fitzgibbon, IPO editor at research firm WorldFinanceNet.
ONI Systems, based in San Jose, Calif., develops and sells all-optical networking equipment designed to reduce bandwidth and service bottlenecks. Its shares closed down 21-1/4 at 115-9/16 in Nasdaq trading on Friday.
Accelerated Network's offering of 4 million shares priced above its expected range of $11 to $13 per share, which had been raised from an original range of $9 to $11.
Credit Suisse First Boston was the lead underwriter for the issue.
``In general a small float tends to have a first day pop,'' said Kenan Pollack, money editor at Hoover's Online.
Market watchers say that network-infrastructure companies are doing particularly well in the IPO market.
``What we do see is that investors are being selective,'' Pollack said. ``Within certain selective industries, there's clearly support.''
This is offsetting a lack of demand in other parts of the IPO market.
``This is not a weak IPO market at all,'' Fitzgibbon said.
16:06 06-24-00 |
