2 Medical-Device Firms Rise in 1st Day Public
Hearing aid maker Sonic Innovations Inc. (SNCI) helped the new-offerings market come roaring back Tuesday.
The Salt Lake City-based company’s shares rose 51% in first-day trading as investors showed they will still significantly bid up initial public offerings, or IPOs, even after recent steep declines in many computer and Web stocks.
Sonic’s shares climbed $7.13 to $21.13, a day after the company sold 3.6 million shares at $14 each, raising $50.4 million.
South San Francisco, Calif.-based ViroLogic Inc. (VLGC), which sells a test to measure the resistance of HIV to drug treatments, rose 4.5%--although the company sold its shares for half of the initial expected price. The stock rose 31 cents to $7.31, a day after it sold 5 million shares at $7 each.
Many companies have been scaling back their first-time stock sales to ensure that the deals get done amid market turmoil.
Last week, in addition to AT&T; Wireless Group’s (AWE) record-breaking $10.6-billion initial public offering, four companies completed sales totaling about $664 million. The IPOs came as 31 companies canceled sales in April after Nasdaq’s recent plunge.
“Underwriters are gently probing the IPO minefield,” said David Menlow, president of IPOfinancial.com.
Companies filing for IPOs Tuesday included San Mateo, Calif.-based Blue Martini Software Inc., which hopes to raise $75 million, and Carlsbad-based software maker Kinzan.com, which hopes to raise as much as $57.5 million.
