IBM's NetObjects Rises 8 Percent in 1st Trading Day (Update1)
(Closes stock in 2nd paragraph; adds analyst comment in 4th,
5th paragraphs.)
Redwood City, California, May 7 (Bloomberg) -- NetObjects
Inc., a unit of International Business Machines Corp. that makes
Internet software, rose 8 percent in its first day of trading
after an initial stock sale.
The Redwood City, California-based company rose 1 to 13 as
12.9 million shares changed hands on the Nasdaq Stock Market. The
stock traded as low as 11 1/8 and as high as 16 3/8. The company
closed with a market value of $339.5 million.
NetObjects sells software that helps businesses build and
maintain sites on the Internet and corporate intranets, the
company said in its IPO filing with the Securities and Exchange
Commission.
''There's some question as to how popular their software
really is with users,'' said Ben Holmes, the president of
ipoPros.com, a Boulder, Colorado-based research firm that
specializes in initial public offerings.
Still, ''I like that they provide a full suite of (software)
tools that allow you to build out and deploy sites,'' he said.
NetObjects yesterday sold 6 million shares at $12 each,
raising $72 million. The shares were priced at the midpoint of
the $11-to-$13 range set by BT Alex. Brown Inc., which handled
the transaction. The sale represented a 23 percent stake.
NetObjects trades under the symbol ''NETO.'' BancBoston
Robertson Stephens and Piper Jaffray Inc. assisted in the sale. |
