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SureBeam IPO falls in debut
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March 16, 2001: 4:42 p.m. ET
Unit of Titan Corp., the only IPO this week, falls 14% in open
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NEW YORK (CNNfn) - SureBeam Corp., a unit of Titan Corp., became the only IPO to make it to the new issues market this week, but with dismal results, falling quickly below its offer price Friday.
SureBeam shares opened at $10.03, hit a high of $10.19, then fell, trading down $1.41 to close at $8.59 on the Nasdaq.
SureBeam raised $67 million Thursday, selling 6.7 million shares at $10 each via lead underwriters Merrill Lynch.
Of the four IPOs expected this week, only SureBeam (SURE: Research, Estimates) made it to market. Nextel International, the international wireless unit of Nextel Communications (NXTL: Research, Estimates), withdrew its planned offering Thursday due to poor market conditions.
 Technology deals are not doing well with Nasdaq's poor performance recently. Several tech firms have warned in recent days, such as Compaq Computer (CPQ: Research, Estimates) and Computer Sciences (CSC: Research, Estimates), sparked a technology selloff Friday.
"Anything technology-related that is new is already seen with some skepticism and people are running away," said Corey Ostman, co-CEO of Alert.com. "It's a tough market right now."
Iasis Healthcare Corp., an operator of acute care hospitals, also postponed due to market conditions. The new issue from QK Healthcare Inc., a wholesale distributor of health-care products, is now expected next week.
San Diego-based SureBeam provides irradiation systems and services that improve food safety and prolong shelf life, and provides disinfestations. The company's irradiation process does not use nuclear radioactive materials to cleanse food and the process does not comprise food taste, texture or nutritional value, SureBeam said in a filing with the Securities and Exchange Commission.
SureBeam uses an electronic beam technology to destroy bacteria such as E. coli, salmonella and listeria. The company built the first commercial irradiation service center in Sioux City, Iowa, and plans to build additional centers in Los Angeles, Philadelphia and Chicago in the next 18 months.
Titan Corp. (TTN: Research, Estimates) will own about 84 percent of outstanding common stock and 98 percent of voting power. 
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