It looks like the Internet IPO market is still alive and well. Shares of e-commerce software provider Ariba (Nasdaq: ARBA) went through the roof on their first day of trading on Wednesday, reminding Wall Street of the remarkable opening-day gains that were common, oh, a couple months ago.
Ariba stock priced at $23 and closed at $90, a remarkable gain of 291 percent in an extremely busy week for IPOs. The stock opened at $61 and just kept climbing. This is even more impressive considering the original price range for the stock was $16 to $18. The range was later raised to $20 to $22, before the offering finally priced at $23. The number of shares originally offered was four million, and that number was raised to five million.
Ariba was expected to perform well, but Wednesday’s showing surpassed almost all expectations. E-commerce software looks hot, hot, hot.