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The sole Internet deal expected to hit the market week, shares of Entrust Technologies (ENTU) are already benefitting from strong interest. Expected to go out between $14 and $16, the deal priced on the high-end of the range. Moreover, the size of the offering was boosted from 7.1 mln shares to 7.7 mln (+8.5%). Out of the three major deals scheduled to begin trading today (including a cable modem company and a provider of wireless telecom infrastructure), Entrust is the only one that priced on the high-end of the offering range. The Richardson, Texas-based company is a developer of software that through the management of digital certificates allows companies to manage secure electronic communications and transactions. If the performance of competitor VeriSign (VRSN) since its debut as a public company is any indicator, Entrust Technologies should be a strong performer. VeriSign, a provider of digital certification authority products, came to market in late-January at $14 per share. The stock rose 11 1/2 points, or 82%, on its first day of trading, and rallied to $49 over the next several months (Chart). Unfortunately for both VeriSign and Entrust Technology, several heavy hitters have announced plans to enter this space, including, guess who-- Microsoft. Security Dynamics (SDTI) and Network Associates (NETA) will compete directly with Entrust. ENTU shares just opened. Stock trading at $23.375 plus 7.375 pts, after opening at $22.125....from brieifng.com recently |
