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IPOs fight off volatility
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October 12, 2000: 5:02 p.m. ET
Synplicity up 42%, Introgen rises 6%, as IPOs revise deals to meet demand
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NEW YORK (CNNfn) - Two new issues fought off broad market volatility Thursday to show moderate gains, but only after slashing their initial public offerings to help generate demand.
Software company Synplicity Inc. jumped 42 percent, while biotechnology company Introgen Therapeutics Inc. rose about 6 percent.
"Both deals are damaged goods," said John Fitzgibbon, editor of WorldFinanceNet.com. "The underwriters reduced the deals to such a range that it could be sold -- they brought supply down to meet demand."
Middle East violence caused the Dow Jones industrial average to tumble at mid-day Thursday while the Nasdaq composite managed to avoid the turbulence. Earnings continue to take their toll, with Home Depot (HD: Research, Estimates) warning it will miss fiscal third- and fourth-quarter earnings forecasts due to a drop in lumber and building materials retail prices.
"You have all the negative things in the market place that you could possibly wish to have -- fear, politics, and choppy earnings," Fitzgibbon said.
Both Synplicity and Introgen Therapeutics managed to rise in spite of these problems.
 Synplicity gained $3.38 to $11.38 after reducing the price range of its deal. The software maker raised $34.4 million Thursday after selling 4.3 million shares at $8 each via lead underwriters Robertson Stephens. The company had planned to sell 4.3 million shares at $10-to-$12 each.
Synplicity's software helps large companies such as Cisco Systems, Motorola Inc. and Nortel Networks Corp. design and verify large, complex chips quickly.
Sunnyvale, Calif.-based Synplicity (SYNP: Research, Estimates) had net losses of $2.8 million on revenue of $13.9 million for the six months ended June 30.
Introgen cuts
Introgen Therapeutics gained 50 cents, or 6.2 percent, to $8.50. The biotech followed a similar route to ensure demand for its shares. The company sold 4 million shares at $8 each via underwriters led by SG Cowen, but had originally planned to sell 5 million shares at $12-to-$14 each.
Austin, Texas-based Introgen develops gene therapy products to treat cancer. The company's lead product, INGN 201, treats cancer cells with tumor suppressor genes. Introgen is developing INGN 201 with Aventis Pharmaceuticals Products Inc. and is in Phase III clinical trials with the Food & Drug Administration to treat head and neck cancers.
Introgen (INGN: Research, Estimates) competes against other biotech and pharmaceutical companies, including Canji and Onyx Pharmaceuticals.
After the IPO, Aventis will hold a 19.4 percent stake, the University of Texas will have 15.7 percent, and Nomura International will have 4.7 percent.
DrugAbuse pulls
DrugAbuse Sciences, which was expected to float its deal this week, decided to pull its IPO, underwriters on the offering said. DrugAbuse Sciences had cut its price range several times. The company originally filed 4 million shares at $13-to-$15, which was reduced to $10-to-$12, then revised to $9-to-$11 and then finally $8-to-$9. UBS Warburg was to serve as lead underwriter on the deal.
Los Altos, Calif.-based DrugAbuse Sciences develops and markets new therapies for alcohol and drug abusers. The company had planned to trade under "DASI." 
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