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IPO Update: Caldera soars up 110 percent

Caldera closed up 15 7/16, or 110 percent, to 29 7/16 Tuesday in its inital public offering.

The provider of the Linux operating system and support upped its range Friday to $10-12, from an original estimate of $7-9.

Caldera's (Nasdaq: CALD) 5 million shares are likely to see strong demand. Linux companies Red Hat (Nasdaq: RHAT) and VA Linux (Nasdaq: LNUX) both saw impressive first day gains.

But analysts said Caldera, which recently settled a lawsuit with Microsoft (Nasdaq: MSFT), isn't likely to see the first day gains of VA Linux, which set a record courtesy of Wall Street's Linux love affair.

The company is coming out on the tail-end of the Linux trend, and its focus on e-business hasn't yielded great financials. For the year ending Oct. 31, Caldera's sales were $3 million with a loss of $9.36 million.

Caldera faces competition from other providers of Linux operating systems, such as Corel (Nasdaq: CORL), MacMillan, Red Hat, SuSE and TurboLinux. It also competes with more established companies including IBM (NYSE: IBM) and Novell (Nasdaq: NOVL), the company said.

Robertson Stephens is the lead underwriter for the offering.