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Phone.com rings in IPO
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June 11, 1999: 1:08 p.m. ET
Wireless Internet access software maker soars 151 percent in debut
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NEW YORK (CNNfn) - Shares of wireless Internet access software maker Phone.com Inc. jumped 151 percent in its first day of trading Friday, making its mark as one of the few Internet-related initial public offerings to make a splash in the last few weeks.
Redwood City, Calif.-based Phone.com (PHCM) makes software that allows mobile phone subscribers to access the Internet.
The company's shares closed at 40-1/8, up 24-1/8 from an offering price of $16.
Phone.com's offerings are particularly attractive to investors as wireless Internet access becomes more prevalent from a variety of devices.
The company counts Motorola Inc. (MOT), Qualcomm Inc. (QCOM) and Nextel Communictions Inc. (NXTL) among the wireless telecom firms that use Phone.com software in their products.
The nascent market, in which Phone.com has helped to set industry standards, is prime terrain for competition. Microsoft Corp. (MSFT) is one of the many that is expected to give Phone.com a run for its money.
"It's a very interesting market in the sense that, in our market, there is no desktop," said Alain Rossmann, Phone.com president and chief executive officer.
"There is no relationship to the personal computer market, so no PC company, no matter how dominant, has a natural advantage. [Microsoft] is large and has a lot of money, but it doesn't have a technological or natural advantage."
Phone.com raised $73.6 million in its offering of 4.6 million shares. The company will use the IPO proceeds to invest in the development of new products and expand its sales force to increase its global reach.
-- from staff and wire reports
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