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McData a McHit
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August 9, 2000: 5:29 p.m. ET
Software provider moves up 200%, Repeater moves up 90%; others stumble
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NEW YORK (CNNfn) - A company that helps speed information along the World Wide Web found its stock placed in the fast lane by investors Wednesday, overshadowing a largely mundane debut by several other new issues.
Switch and software provider McData Corp. joined H Power Corp. as the day's initial public offering winners Wednesday, building on their momentum from Tuesday evening, when both companies priced their initial public offerings above their expected range.
McData Corp. (MCDT: Research, Estimates), a provider of equipment to the emerging storage area network industry, doubled its offer price and gained 205 percent.
 The Broomfield, Colo.-based company, a unit of EMC Corp. (EMC: Research, Estimates), climbed 57-9/16 to 85-9/16 on the Nasdaq. McData priced above its expected range of $24-to-$26 per share Tuesday evening, floating 12.5 million shares at $28 each, raising $312.5 million. Credit Suisse First Boston led a team of underwriters on the deal.
Analysts had targeted McData as one of the week's stronger new issues because it offers what has become a rare trait in the IPO market: an actual profit. The company posted earnings of $10.8 million through the first six months of the year.
"(McData) did exactly what we thought they would do," said Michael Falbo, analysts with ipoPros.com. "They're a great company and there was a lot of hype around this deal."
But Francis Gaskins, founder of Gaskins IPO Desktop (Gaskinsco.com), said that McData will have tough competition from Brocade Communication Systems Inc. (BRCD: Research, Estimates), which has a much greater market share in switches for storage area networks.
Repeater makes its move
Repeater Technologies Inc. made a late surge, gaining nearly 90 percent. For much of Wednesday, Repeater hovered at 10 and then bounced back in late trading, climbing 8 to close at 17.
Sunnyvale, Calif.-based Repeater Technologies develops and sells equipment for wireless communications networks. The company raised $42.75 million Tuesday after pricing 4.74 million shares at $9 each, the mid-point of its range, via underwriters U.S. Bancorp Piper Jaffrey.
IPOs get an H Power boost
H Power Corp. (HPOW: Research, Estimates) rose 2, or 12.5 percent, to close at 18. Shares rose as high as 28-1/2 just after the company opened at 27.
The Clifton, N.J.-based company develops fuel cells that are designed to replace batteries in a host of products, including golf carts, traffic signs and mobile homes.
The company raised $112 million by pricing 7 million shares at $16 a share, well above its expected rage of $11-to-$13 per share, Tuesday in a deal led by Lehman Brothers.
WorldFinanceNet.com analyst John Fitzgibbon said the company saw strong demand just before its pricing because of energy sector momentum which produced a range boost. But that momentum did not continue through the aftermarket.
Alternative electrical power provider Active Power Inc. (ACPW: Research, Estimates) jumped more than 200 percent Tuesday, leading a host of new issues higher. Active Power built fell 3/4 to close at 52.
Investors were less than kind to a handful of other deals opening Wednesday.
Investors could find no cure for pharmaceutical company AtheroGenics Inc.'s backward momentum. The Alpharetta, Ga.-based company, which develops drugs to treat asthma and arthritis, sputtered up 1/4, or 3 percent, to 8-1/4.
AtheroGenics (AGIX: Research, Estimates) priced 6 million shares at $8 each Tuesday, well below the $11 to $13 range initially targeted by underwriters Chase H&Q.
ChipPac can't wrap up gains
Semiconductor packaging company ChipPac (CHPC: Research, Estimates) also found itself in a rut. The Santa Clara, Calif.-based company edged up 1/2, closing at 12-1/2, from the $12 per share level it sold 10 million shares at the night before.
The lukewarm market response completed a disappointing IPO process for the company, which originally targeted selling 15.5 million shares at $20 to $22 a piece.
Tvia Inc., which sells chips for the Internet appliance, broadband and set-top box market, rebounded closing flat at 11. The Santa Clara, Calif.-based company had earlier fallen below its offer price. Tvia (TVIA: Research, Estimates) priced 5 million shares at $11 each, the bottom of its $11 to $13 price range, via Banc of America Securities.
Also stumbling out of the gates was RadView Software Ltd. (RDVW: Research, Estimates), a provider of software to monitor the performance of Web applications that was initially targeted to perform well by analysts.
RadView found little support in the market, however, falling 31/32, or nearly 10 percent, to 9-1/32. The Israeli company priced 4 million shares at $10 each, the bottom its range, through underwriters Donaldson Lufkin & Jenrette.
"It's been kind of an odd week," said Falbo. "The momentum seems to have died down." 
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