Avici and Corvis Make Stunning Debuts
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On a day when other high-technology stocks helped drag the market down 4 percent, Avici Systems Inc. (Nasdaq: AVCI) and Corvis Corp. (Nasdaq: CORV) shone brightly in Wall Street introductions.
By 3:00 EST, Corvis shares had more than doubled in value to about $83 per share from their opening price of $36. The IPO included 31.6 million shares. The share price also beat the company's July 25 estimates of $28 to $30, which already had been revised upward (see Corvis IPO Terms Increased ).
Avici's shares were selling at $94, having soared over 200 percent in value from the $31 opening price. The IPO comprised 7 million shares. Avici, too, had estimated its share price to be $28 to $30 on Tuesday (see Avici IPO Heats Up ).
The stunning debuts indicate that Corvis's optical switch and Avici's terabit router have captured mindshare and confidence with telecom investors, despite the fact that neither company yet has significant amounts of customers, revenues, or shipping products (see Corvis, Avici Bide Their Time ).
At any rate, Corvis and Avici shouldn't have trouble marketing and developing their products now, having raised over $1 billion and $200 million, respectively.
-- by Mary Jander, senior editor, Light Reading lightreading.com |
