To: Jenna who wrote (31718 ) 4/8/1999 From: puborectalis Respond to of 120523
Rhythms NetConnections shrs speed ahead after IPO NEW YORK, April 7 (Reuters) - Shares of Rhythms Netconnections Inc. (Nasdaq:RTHM - news) raced ahead after their public debut Wednesday, reflecting the growing demand for speedier access to the Internet. The shares rose 48-1/2 to 69-5/8 during afternoon trade. The provider of high speed, direct data access via Digital Subscriber Lines (DSL) has been in great demand as businesses increasingly send information via the Web and other networks. ''This company is receiving so much attention because there are only two like that (DSL providers) out there. Rhythms and Covad, which just went public a couple of months ago,'' Paul Bard at Renaissance Capital said. Competitor Covad Communications Group Inc. (Nasdaq:COVD - news), which went public on Jan. 22 at $18 a share, was up 5-9/16 at 74 in afternoon trading on Wednesday. In March, Rythms Netconnections received a $30 million private placement from Microsoft Corp. (Nasdaq:MSFT - news) and MCI WorldCom Inc. (Nasdaq:WCOM - news), according to Steve Lacey at the IPO Reporter. As part of the deal, MCI agreed to sell 100,000 DSL lines to the company within the next five years. The company, already in 10 urban markets including Boston, San Francisco and New York, plans to expand services to 50 cities by the end of 2000, according to Lacey. Rythms Netconnections targets mostly small- to mid-size businesses, particularly ''teleworkers'', including employees working from home or traveling on business who need a speedy connection to their home base. Northpoint Communications, is another provider of high- speed data that is expected to go public at the beginning of May in a deal underwritten by Goldman Sachs. ''These companies can co-exist. There is plenty of opportunity for them,'' Bard said.