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Summarized by Kent Larsen
Corvis a Runaway Hit on First Day
NEW YORK, NEW YORK -- LDS CEO David Huber's Corvis Corp. was a hit on Wall
Street today, more than doubling it share price on its first day. The
company had already increased its initial estimated share price early
in the week from $13 to $15 to $28 to $30 a share, and then raised
the price again to $36 for its sale. It then opened at $95 a share
today, selling more than 90% of the offered shares and settling at
the end of the day at $84.72 a share.
The sale raised about $1.14 billion for Corvis, which the company
will used for working capital and expansion, as it seeks to roll-out
its long-distance fiber optic transmission technology. The offering
values the company at 27.9 Billion. However, in spite of the
company's lofty valuation, the company has "not recognized meaningful
revenue," according to the company's SEC filings. To date Corvis has
net losses of $91.3 million.
Recent tests conducted by Corvis along with the Williams Companies,
show that Corvis' technology can transport signals coast to coast
over a fiber optic network, theoretically reducing the cost of
operating such a network by 75%.
Sources:
Corvis Shares Double on Nasdaq Debut
Yahoo! News (Reuters) 28Jul00 B4
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