Tech Industry

Trust pays off in Net IPO

Internet security firm Trusted Information Systems rolls out its public offering with its shares opening at $15 a share, 15 percent higher than its initial offering price.

Internet security firm Trusted Information Systems (TISX) rolled out its public offering this morning, with its shares opening at $15 a share, 15 percent higher than its initial offering price.

TIS, which received about $41 million from its IPO, issued 3.4 million shares. Trading volume, however, exceeded that figure in midday trading, indicating many institutional investors who bought shares at the $13 offering price sold them quickly.

Shortly after noon Eastern time, TIS shares traded at $17.13, its high for the day.

TIS provides security for the Internet, internal computer networks, and standalone workstations; its Gauntlet firewalls are its best-known products. The company also offers the RecoverKey cryptographic system, security consulting, and research for government and commercial customers. The firm, once primarily a defense contractor, has expanded its customer base in recent years.

J.P. Morgan acted as lead manager for the offering, with Donaldson, Lufkin & Jenrette Securities and Furman Selz serving as comanagers. TIS granted its underwriters an option to buy an additional 510,000 shares to cover overallotments.