Three Internet-Related IPOs Surge in First Day of Trading
drakes:
But who among the three made money and has a targeted audience? Among the three iTurf has the best and most precise target audience-Generation Y.I don't think anybody else among the population is more at ease with technology and computers and they got money and they spent,said to be worth $256 Billion.The other two have more of a general audience among thousands of others.Then what about the financials of the other two (iVillage (Target:women in general & VUSA every Tom,Dick and Harry))? Making any money yet or is it lot of hype and no money? Also Delia still owns 75% of iTurf if I am not mistaken and they are quite well versed in retailing in my opinion.
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New York, April 9 (Bloomberg) -- Three Internet-related IPOs
surged in their first day of trading, as investors continued to
snap up shares of anything tied to the online world.
Extreme Networks Inc., which competes in one of the fastest-
growing parts of the networking-equipment market, making switches
and software that route information on computer networks, tripled
in its first day. Extreme rose 38 3/8 to 55 3/8 in trading of
10.2 million shares on the Nasdaq Stock Market.
ITurf Inc., the online unit of clothing retailer Delia*s
Inc., almost tripled. It rose 35 7/16 to 57 7/16 as about 7.2
million shares changed hands. USinternetworking Inc., which lets
customers use business-management software over the Internet,
more than doubled. It rose 36 1/2 to 57 1/2 in trading of 12.7
million shares, making it the 10th-most active stock in U.S.
markets.
''The focus right now has been on Internet stocks because of
their after-market performance,'' said Thompson Patterson,
director of equity capital markets at J.C. Bradford & Co. in
Nashville, Tennessee.
In the last three months the top 15 IPOs have been Internet-
related, and all are trading at three times or more their issue
price. Among these are VerticalNet Inc., which is up sevenfold,
and Healtheon Corp., up more than sixfold.
Market Values
At the close of trading today, Cupertino, California-based
Extreme had a market value of $2.65 billion, New York-based ITurf
was valued at $960.3 million, and Annapolis, Maryland-based
USinternetworking was valued at $2.23 billion.
Yesterday, Extreme sold 7 million shares, a 15 percent
stake, at $17 each, raising $119 million. ITurf sold 4.2 million
shares, a 25 percent stake, at $22 each, raising $92.4 million.
USinternetworking sold 6 million shares, a 15 percent stake, at
$21 each, raising $126 million.
Extreme was among the first networking companies to make
products that use the ''Layer-3'' switching method, which gives
corporate systems managers more control over their computer
networks. Extreme's products compete with equipment shipped by
larger rivals, including No. 1 networking company Cisco Systems
Inc., 3Com Corp. and Northern Telecom Ltd.
ITurf, which sells clothes and provides chat rooms for 10-to-
24 year olds, a group it calls Generation Y, is one of the few
money-making Internet companies to sell shares. It earned
$464,000 on revenue of $4 million in the year ended Jan. 31 after
losing $40,000 on revenue of $134,000 the previous year.
USinternetworking buys licenses for computer programs that
manage sales, finance and other back-office functions, then
provides access to those programs over the Internet for a monthly
fee. The service is meant to save customers the expense of
installing and maintaining the software on their own computers.
Extreme trades under the symbol ''EXTR,'' ITurf under the
symbol ''TURF,'' and USinternetworking under the symbol ''USIX.'' |
