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Technology Stocks : Inktomi (INKT) -- Ignore unavailable to you. Want to Upgrade?

To: RCJIII who wrote (62)	6/10/1998 1:47:00 PM
From: Francis Gaskins	Read Replies (1) \| Respond to of 1945

"Inktomi soars on debut" -- from CBS MarketWatch Internet-software IPO only good news for day By Darren Chervitz, CBS MarketWatch Last Update: 01:16 PM June 10, 1998 NEW YORK (CBS.MW) -- While most new issues received lackluster receptions, Internet-software developer Inktomi screamed ahead by more than 100 percent on its U.S. stock market debut Wednesday to highlight the start of an important and busy week in IPOs. Inktomi (INKT), whose technology will be the motor running several major search engines, priced its 2.26 million share offering at $18 each, at the top end of an estimated pricing range that had already been increased by lead underwriter Goldman Sachs. The stock leaped to as high as 38 1/4 in early trading. With 4.4 million shares already changing hands -- about twice the number of shares offered in the IPO -- the stock traded at 37 1/4. Inktomi benefited from some major recent customer wins, including from Microsoft (MSFT), Yahoo (YHOO) and America Online (AOL), several of which were announced after the company filed for its IPO. "It was beautiful what they did. It was so well-orchestrated," said Francis Gaskins, IPO analyst for Gaskins & Co. "It was like a play. Act I was the filing. Act II were the contracts they signed, and then Act III was boom (the IPO)." The moonshot was a welcome relief for the beleaguered IPO market, where few deals of late have seen gains of even 10 percent. Still, analysts warned that the debut doesn't necessarily signify a rejeuvenation of the IPO market. "This is an isolated event," said John Fitzgibbon, editor of the IPO Reporter. "All you have to do is take a look at the rest of the market." Take, for instance, Wednesday's disappointing spin-offs from U.S. Office Products (OFISD). The office products distributor split off four of its units and planned on floating stock offerings to the public for three of the newly formed companies. However, the IPO from graphic arts service provider Workflow Management (WORK) was canceled because the company thought it was worth more than the estimated IPO terms. Although the new shares weren't sold, the stock started trading anyway and was off 2 to 9. Meanwhile, the performance of the two IPOs that did get completed was mixed, with school supply distributor School Specialty (SCHS) up 2.4 percent over a $15.50 offering price that was in the top end of the expected range and corporate travel agent Navigant International (FLYR) off 7.7 percent from its lower-than-expected $9 offering price. Manish Shah, president of IPO Maven, said he believed School Specialty's stock could be 30 percent higher within six to nine months as it pursues its roll-up acquisition strategy. "The problem is margins are so, so low in the business, it remains to be seen how profitable the company can be," he said. The day's other IPOs performed poorly as well. Commercial printer Master Graphics (MAGR), for instance, fell 5 percent under its $10 offering price, hardly a surprise given the cancellation of the Workflow Management deal. Financial software developer The InterCept Group (ICPT) priced its offering below expectations at $7 a share, but the stock had not started trading by noon..