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Rediff.com in strong debut
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June 14, 2000: 6:35 p.m. ET
Indian Web portal's offering brings investors back to IPO fold - for now
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NEW YORK (CNNfn) - The initial public offering market got a much-needed boost Wednesday as Rediff.com. India Ltd., an Internet portal focusing on India and Indians worldwide, continued the success of the India Internet sector and jumped nearly 61 percent in its market debut.
Another foreign company, Turkish mobile phone company Turkcell, is also planning to trade in the United States in what analysts say could be the biggest Turkish initial public offering ever.
Shares of Rediff.com rose 7-5/16 to close at 19-5/16. The company's stock hit a high of 23-1/2 before settling around 20 near midday on the Nasdaq.
Rediff.com raised $55.2 million after it priced 4.6 million shares at $12 each, the top of the range. 
Like many Internet portals, the company's site offers e-commerce, original content from its own editorial staff, and interactive communities. Rediff.com splits these into 17 different channels demarcated by specific interest.
Steve Tuen of IPO Value Monitor, told CNNfn.com Rediff.com (REDF: Research, Estimates) is benefiting from investors feeling more secure about equity investments.
"The environment right now has been more conducive to IPOs with the general consensus that the U.S. economy is slowing down," Tuen said. "(Rediff.com is higher) with a lack of any other meaningful IPOs out there."
Rediff.com is similar to another Indian portal, Satyam Infoway Ltd. (SIFY: Research, Estimates), which soared on its debut in Oct. 1999. Satyam hit a high of 113 after pricing at 18, but came back down to earth with a host of other technology stock on the Nasdaq and is now trading at 26-3/4.
"Satyam came at a time when investor enthusiasm was at a peak," Tuen said.
Teun added that while Satyam probably has a head start, India is certainly large enough for at least two of these companies.
August Technologies (AUGT: Research, Estimates) also fared well in its first day of trading, rising 3-3/16, or more than 26 percent, to 15-3/16.
The Bloomington, Minn.-based company raised $39.6 million Tuesday night pricing 3.3 million shares at $12, the bottom of its range.
August Technologies makes equipment for detecting microdefects semiconductors.
Turkcell's atypical IPO
Turkish mobile telephony concern Turkcell is gearing up for what could be its country's largest public offering. Major Turkcell investors are planning on offering their privately held stock on the New York Stock Exchange, the London Stock Exchange and the Istanbul Stock Exchange.
Because private shareholders will make the offering, the company said it will not receive any proceeds from the IPO. The number of shares on offer and price range will be determined later, but Turkcell said it will have 240 billion shares outstanding after the deal.
Goldman Sachs and Morgan Stanley Dean Witter are managing the deal.
Medsite.com leaves waiting room
Medsite.com withdrew its IPO Wednesday, citing market volatility in relation to Internet companies. The New York-based company planned to raise about $99 million, pricing 9 million shares between $10 and $12.
Other medical Web sites have struggled recently, most notable Drkoop.com (KOOP: Research, Estimates), which laid off 30 people last month in an effort to save cash.
Medsite.com had revenue of nearly $9 million, but lost more than $17.6 million in 1999. Credit Suisse First Boston was the lead manager. The company had planned to trade under the symbol MSTE. 
-- from staff and wire reports
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