The initial public offering of Alteon Systems (Nasdaq: ATON), which provides infrastructure solutions to online businesses, capped off a strong week for IPOs with an extremely strong opening day on Friday. Shares of Alteon nearly quadrupled from their offering price of $19, gaining 55-15/16 to 74-15/16.
What makes this rise even more impressive is that the original price range for the IPO was $14 to $16 before high demand prompted Alteon to raise the range to $17 to $19. In addition, the offering size was boosted from three million shares to four million shares.
Internet infrastructure is easily the hottest sector right now, and Alteon Systems is an infrastructure company with a solid customer base. The company’s customers include Yahoo!, IBM, Compaq, Hewlett-Packard, 3Com, NEC, Web TV and Ticketmaster Online-Citysearch.