June 10, 1998 3:45 PM PDT
Inktomi doubles IPO price
The maker of search-engine technology opened at 30.75, up 71 percent from the $18-per-share price that underwriters set for the stock yesterday after the markets closed. The stock climbed to as high as 38.63 before settling at 36 after nearly 6 million shares traded hands.
Based on the 2 million shares floated, and excluding related charges, the offering generated $36 million for the software maker.
Inktomi, whose technology is used by companies such as Yahoo, Wired's HotBot, and Snap, will float 2.25 million shares, of which 2 million are being sold by the company and 254,000 are being sold by shareholders. (Snap is owned by CNET: The Computer Network, which publishes NEWS.COM.)
The company filed yesterday with the Securities and Exchange Commission to boost its offering range from $16 to $18 per share, up $4 per share, or 29 percent, from the high end of the original target range, which was set at between $12 and $14 a share. (See related story)
The strong offering comes after a day when other Net stocks rallied. For example, CNET gained 37 percent, to 45.13, after announcing that NBC had purchased a 19 percent stake in CNET's Snap Internet portal service and would operate the service as a joint venture. Other companies competing in that space also gained. Infoseek gained 17 percent, to 27.25; Yahoo gained 8 percent, to 117.88; and Lycos rose 7 percent, to 53.56.