WorldGate More Than Doubles in 2 Days After Initial Share Sale
Bensalem, Pennsylvania, April 16 (Bloomberg) -- Shares of WorldGate Communications Inc., which provides high speed Internet access to cable-television subscribers, surged as much as 33 percent, more than doubling in its second day of trading.
WorldGate rose 8 to 42 in midmorning trading. The suburban Philadelphia based-company sold 5 million shares to the public yesterday at $21 each, its initial stock sale.
WorldGate's access service works through set-top boxes connected to a cable television service, providing access to the Internet at speeds as much as 500 times that of standard dial-up modems. Cable operators buy WorldGate's equipment and pay a monthly fee for each subscriber using the company's Internet access service.
The company began operations in March 1995. It had revenue of $1 million last year and a loss of $27 million. In 1997, it had a loss of $14 million on revenue of $141,000.
General Instrument and Scientific-Atlanta Inc., the two leading suppliers of set-top boxes, both hold stock in Bensalem, Pennsylvania-based WorldGate.
WorldGate has multi-year agreements with six operators of cable televisions systems, which collectively have about 2.7 million subscribers. As of March 29, some 2,645 homes subscribed to WorldGate.
Apr/16/1999 10:26
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