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Technology Stocks : Software.com, Inc. (SWCM) -- Ignore unavailable to you. Want to Upgrade?

To: Rick_Barry who wrote (16)	6/24/1999 7:08:00 PM
From: Rusty Johnson	Read Replies (1) \| Respond to of 142

Software.com, CyberSource Show Modest Gains After IPOs By DUNSTAN PRIAL Dow Jones Newswires NEW YORK -- A more considered approach to new Internet issues was in evidence Thursday as two debut stocks met with moderate success. Shares of Software.com Inc., which makes messaging software for Internet-service providers, rose 20% on the Nasdaq Stock Market. E-commerce company CyberSource Corp. gained 23%. But both companies' performances were in stark contrast to that of Ariba Inc., an e-commerce company that ended its first day of trading Wednesday at $90, more than triple the offering price of $23. Software.com raised $90 million from the sale of six million shares at $15 each. The stock opened at $22.625 and touched a high of $25, a 67% increase from the IPO price. It then dipped, closing at $18.0625. Strong prepricing demand allowed Software.com to increase the price range to $12 to $14 from $10 to $12 just prior to the IPO. Even so, the shares priced above the amended range. Credit Suisse First Boston Corp. was lead underwriter. The sale represented a 15% stake in Software.com and created a market capitalization of $794 million for the company at the latest stock price. CyberSource issued four million shares at $11 each. The stock opened at $16.25 and hit a high of $18 before demand fell off. The shares closed at $13.5625. Merrill Lynch & Co. served as lead underwriter. CyberSource sold a 19% stake through the IPO. Analysts say investors have recently begun screening their selections of Internet IPOs far more aggressively than earlier this year. The dynamics that allowed any "dot-com" company to explode into the public markets have shifted, said David Menlow, president of the IPO Financial Network, Millburn, N.J. Investors are now taking into account such previously ignored factors as an IPO-stage company's business model, the underwriters of an offering, and a company's pre-IPO investors. As is common with most upstart Internet companies, neither Software.com nor CyberSource is turning a profit.