Critical Path Shares Jump after Initial Offering
PALO ALTO, Calif., March 29 (Reuters) - Shares of Critical Path Inc.(Nasdaq:CPTH - news) were trading at more than double their IPO price shortly after the electronic-mail outsourcing company went public on Monday.
The stock, which began trading at $24, were up $35 at $59 a share by early afternoon in trading on the Nasdaq.
The strong demand was largely expected, as the company's estimated offering price had been twice increased, from an initial range of $9 to $11 per share.
Critical Path also enjoyed generous financing in its pre-IPO stage. In January, when it sought to secure $15 million from venture capitalists, it ended up raising $33 million.
Critical Path has assumed the ambitious mission ''to handle the world's e-mail,'' and already supports millions of electronic mail boxes. From two major data centers, it hosts e-mail for hundreds of different corporations, including that offered on 15 Internet portals, such as the one offered by E*Trade Group Inc., the Internet brokerage.
The service has become popular among many companies that offer e-mail but want to outsource the technical support.
FOR THE RECORD
Critical Path has 4.5 million shrs oust
first day trading, open 45, daily high 78, close 65 7/8
For the day, up 174% on 8.8 million volume
market cap about $296 million.
MESG market cap about $244 million. |
