IPOs Unhurt by Market Woes
The initial public offering market shrugged off the broad market’s losses, with Friday’s debuts ending in positive territory as investors continued to gravitate toward new issues with high growth potential.
Shares of software engineering firm Cysive Inc. (ticker symbol: CYSV) zipped to a 122% gain, closing up $20.75 at $37.75 on Nasdaq after its $17-a-share IPO. It was the top percentage gainer on the technology-laden index, which fell 75.01 points to 2,731.83.
Online network Women.com Networks Inc. (WOMN) gained 41%, climbing $5.38 to $18.50.
“These IPOs--the hot ones--are defying gravity when they come out,” said John Fitzgibbon of Redherring.com.
Reston, Va.-based Cysive helps firms build highly customized systems supporting large-scale e-business. Companies offering complex technology for e-commerce have been hot commodities in the new-issues market, largely because they see demand for such technology exploding as the Internet grows.
Cysive raised $56.95 million after offering 3.35 million shares in its IPO--a 30% stake. The shares priced above the expected range of $14 to $16.
Women.com Networks’ long-anticipated Wall Street deal raised $37.5 million after pricing 3.75 million shares, or an 8% stake, at $10, the top of its downwardly revised price range.
The IPO from the San Mateo, Calif.-based online network, which offers content, personalized services and community and online shopping, had gathered a buzz this summer but was postponed in August because of market conditions.
Shares of semiconductor maker QuickLogic Corp. (QUIK) surged $5.13 to $15.13 after its $10-a-share IPO. The Sunnyvale, Calif.-based firm raised $66.7 million after offering 6.667 million shares.
And Israel’s Jacada Ltd. (JCDA) eked out a gain, rising 6 cents to $11.06 on Nasdaq after its $11-a-share IPO. The software firm raised $49.5 million after offering 4.5 million shares through Lehman Bros.
Two of the year’s most anticipated IPOs are on tap for early next week: Martha Stewart Living Omnimedia Inc. (MSO) and World Wrestling Federation Entertainment Inc. (WWFE). (Reuters)
