Today’s initial public offering of Internet infrastructure company Cobalt Networks could be one of the strongest IPO performers of the year. Analysts are expecting Cobalt Networks, which develops Linux-based server appliances and software including e-commerce security programs, to get off to a scorching start. The company priced five million shares of $22, the top end of its revised range of $20 to $22 after an original range of $14 to $16.
This IPO is expected to see the sort of opening that has been reserved for the highest of high fliers, such as Juniper Networks, Akamai Technologies, Red Hat and Foundry Networks. Internet infrastructure and Linux companies are both being favored by investors right now, and Cobalt Networks falls into both categories.