First IPO Since August Inches Up 3.9%

Shares of Given Imaging Ltd., an Israeli company that provides gastrointestinal imaging through a camera in a pill-sized capsule, rose modestly Thursday after the company became the first in almost two months to hold an initial public offering.

Given Imaging (ticker symbol: GIVN), which sold 5 million shares at $12 each late Wednesday, rose 47 cents, or 3.9%, to close at $12.47 on Nasdaq.

The company is the first to go public since Aug. 13, when Max Re Capital Ltd. (MXRE) raised $192 million. Since then, the summer lull and the Sept. 11 terrorist attacks kept a lid on an already slack new offering market. With just 65 offerings so far this year, IPOs are headed for their slowest year in more than a decade.

Given Imaging raised $60 million by persuading investors to help fund the marketing and distribution of its technology, which has been approved by the Food and Drug Administration.

“It’s times like these that we get good companies that really do need money for their future growth,” said Linda Killian, a portfolio manager of the Renaissance Capital IPO Plus Aftermarket Fund. “Given needs to lay on infrastructure and a sales force to produce and market the product.”

Given Imaging sold the shares through Lehman Bros. Holdings Inc. at the low end of its $12-to-$14 expected price range.

“I think the underwriters were being very cautious--they wanted the deal to do well,” Killian said.

IPOs may be buoyed by three days of gains in U.S. stocks. The Nasdaq composite index has risen 8% after plunging in the days after the terrorist attacks.

Two other companies, Therasense Inc. and Logicvision Inc. have IPOs slated for next week.