Nuance surges in market debut
Nuance Communications Inc. (Nasdaq: NUAN) bounded ahead 88 percent in its debut Thursday; though that's not extraordinary by IPO standards, its impressive considering market conditions have scared off many technology offerings this week.
Shares were up 5 1/16 to 32 1/16 Thursday, as the Nasdaq revived from the week's earlier losses. The company, which makes voice integration software, had priced 4.5 million shares at $17 each, above range, through lead underwriter Goldman Sachs.
"This is a breakthrough area for which strong demand is expected," Irv DeGraw, research director at WorldFinanceNet.com, said in a note. "The company is well-positioned as an early market leader."
The company has about 27.4 million shares outstanding after the IPO, giving it a market capitalisation of about $237.7 million. In 1999, Nuance posted total revenue of over $19.5 million for a net loss of $18.4 million.
Shares were up 3 to 20, or 18 percent after the company priced 4 million shares at $17 each.
The company recorded a net loss of $9.4 million on sales of $2.2 million in 1999.
Morgan Stanley and China International Capital Corporation Limited are acting as the joint lead underwriters. Chase Securities Inc. and Robertson Stephens are acting as co-managers.
As it turned out, market conditions weren't so bad for IPOs. Yesterday's debuts, Corillian (Nasdaq: CORI) rose 4 1/16 to 12 9/16 , and Asian portal Asiacontent.com (Nasdaq: IASIAN) gained 2 5/16 to 13 5/16 after unimpressive performance Wednesday.