OmniVision climbs 162%
Chip maker's price doubles, drug maker up 82% as IPO rebound continues
NEW YORK (CNNfn) - The new issues market continued its surprisingly strong rebound Friday with two deals producing impressive debuts.|
OmniVision Technologies, whose image sensors are used in digital cameras, surged nearly 162 percent, while Pain Therapeutics Inc., which is developing a new breed of opium-based painkillers, jumped more than 82 percent in their first day of trading Friday. Those performances ranked the two IPOs atop the Nasdaq Composite leadership board for the day.
OmniVision and Pain Therapeutics' successes follow a surging initial public offering market Thursday, when four deals produced solid debuts.
The top gainers Thursday were Sunrise Telecom Inc. (SRTI: Research, Estimates) a maker of telecom network testing equipment, which jumped 169 percent and Triton Network Systems Inc. (TNSI: Research, Estimates), a maker of broadband wireless equipment, which climbed 156 percent.
While the IPO market is looking up, investors still are carefully appraising companies opening in the new issues market, IPO and Internet analyst Sara Chang of 123Jump.com said.
"The market is a very different animal than when we were in the 'new economy' frenzy," Change said. "People are more cautious and are evaluating companies as they come up."
OmniVision Technologies more than doubled its offer price Friday, jumping 21 to close at 34.
OmniVision Technologies (OVTI: Research, Estimates) raised $65 million after pricing 5 million shares at $13 each, above its range, through underwriters led by Robertson Stephens.
OmniVision makes semiconductor imaging devices for computers, communications and consumer electronics applications. The company's single-chip image sensor product is used in cameras related products such as personal computer cameras, digital still cameras, personal digital assistant cameras, mobile phone cameras, security and surveillance systems, and closed-circuit TVs.
The deal is benefiting from gains in the hot semiconductor sector, Chang said. OmniVision's single-chip technology can be used in digital cameras, biometrics and automobiles.
"OmniVision's technology is applicable to all different industries," Chang said. "These integral technologies are very necessary because of today's technology advancements."
The company also is profitable. For the year ended April 30, OmniVision reported net income of $3.4 million on revenue of $40.3 million, compared with a loss of $4 million on revenue of $5.2 million the prior year.
Sunnyvale, Calif.-based OmniVision has shipped over 4 million image sensors to customers including Alaris, Creative Technology and Viewquest.
OmniVision competes with image sensor manufacturers such as Matsushita Electronic Industrial (MC: Research, Estimates), Sanyo Electric Co. Ltd. (SANYY: Research, Estimates), Sharp Corp., Sony Corp. (SNE: Research, Estimates), Toshiba Corp. and Victor Co. of Japan.
After the IPO, Aucera Technology Group will hold a 6.3 percent stake, Kemptem Ltd. will have 4.4 percent and OmniVision CEO Shaw Hong will own 4.7 percent
No more pain
Pain Therapeutics followed OmniVision's lead, climbing 9-7/8 to 21-7/8.
The company raised $60 million after pricing 5 million shares at $12 each, the midpoint of its expected range, through underwriters led by Thomas Weisel Partners.
South San Francisco, Calif.-based Pain Therapeutics (PTIE: Research, Estimates) is developing a new generation of opium-based pain-killers, or opioids. The company hopes to reinvent drugs such as morphine into new painkillers with improved benefits.
Current opioid painkillers have major side effects such as respiratory depression, nausea, vomiting and dizziness. Chronic use can lead to tolerance as well as addiction.
Pain Therapeutics is developing drugs that offer enhanced pain relief, few adverse side effects and reduced tolerance and addiction, the company said in a Securities and Exchange Commission filing. The pharmaceutical company has four opioid painkillers in Phase II clinical trials and still must obtain approval from the Food and Drug Administration.
After the IPO, Pain Therapeutics CEO Remi Barbier will own a 31.7 percent stake, and Microsoft (MSFT: Research, Estimates) Chairman Bill Gates will hold 7.7 percent, including 2 million shares owned by his personal investment arm, Cascade Investments LLC. Sanford Robertson, founder and former chairman of Robertson Stephens & Co., will own 1 percent.