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Adolor IPO rises 16%
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November 14, 2000: 5:15 p.m. ET
Drug developer stages comeback, Orion retreats to end flat
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NEW YORK (CNNfn) - Drug developer Adolor Corp.rose 16 percent on its first day of trading Tuesday, but electricity merchant Orion Power Holdings Inc. failed to cling to its early gains and ended the day flat.
Adolor finished up $2.38 to $17.38 after struggling to find direction at the opening. Orion managed an initial rise, but faded in the afternoon to end unchanged at $20.
Broad market volatility is still hampering the IPO market, analysts said. The Nasdaq Composite fell below 3,000 Monday, for the first time since November 1999, but staged a rebound on Tuesday, finishing at 3,138.23.
 Malvern, Pa.-based Adolor develops drugs to treat mild-to-severe pain and also drugs to help treat the side effects of morphine and other narcotics used as pain treatments.
Adolor priced 6 million shares at $15 per share, the bottom of its expected range, raising $90 million Monday night. The company had increased its range by $3 back in September.
For the first six months of 2000, the company had revenue of just $17,000 with losses of $7.3 million.
Orion's star fades
Baltimore-based Orion (ORN: Research, Estimates), as an independent power producer, is trying to capitalize on energy deregulation in 26 states that give consumers the power to choose their own electricity provider.
"There is always going to be demand for electricity and the only problem [for Orion] is attracting consumers," said Steve Tuen, analyst at IPO Value Monitor. "This is not a high-risk type of venture like a software company."
With a broader market rally Orion looked set to close above its offering price, but the stock began a slide back to $20 at midday and saw little movement in the last two hours of trading.
 Orion Power raised $550 million Monday, more than expected, when it sold 27.5 million shares at $20 each via lead underwriter Goldman Sachs. The company had planned to sell 25 million shares at $17 to $20.
Founded in 1998, Orion Power is profitable, with revenue of $341.7 million on operating income of $75.6 million for the six months ended June 30.
After the IPO, entities affiliated with Goldman Sachs will hold a 42.1 percent stake, Baltimore utility Constellation Enterprises Inc. (CEG: Research, Estimates) will have 19.9 percent, Mitsubishi Corp. and affiliates will own 8.5 percent and Tokyo Electric Power Co. International B.V. will have 5.7 percent. 
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