Friday’s turbulent market action did not seem to slow down the initial public offering of 724 Solutions (Nasdaq: SVNX). The company, which provides online banking solutions that enable financial institutions to offer their services on wireless devices, priced six million shares at $26, up from the revised range of $20 to $22 and twice the high end of the original range of $11 to $13. The stock gained more than 176 percent on Friday, soaring 45-13/16 to 71-13/16.
This company is in a sweet spot because it is both an online business enabler/infrastructure play and a wireless play, and both sectors are red hot right now. More and more people are accessing the Internet using Palm Pilots and other mobile computing devices, and 724 Solutions seems poised to be a big beneficiary of this growth.