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Markets > IPOs
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Magma IPO up 46%
graphic November 20, 2001: 4:32 p.m. ET

Provider of chip design software on track for third-best IPO debut this year.
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  • Magma raises $63M ahead of debut - Nov. 19, 2001
  • Simplex IPO shoots up 77% - May 2, 2001
  • Instinet, Global Power IPOs advance - May 18, 2001
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    NEW YORK (CNN/Money) - Shares of Magma Design Automation Inc. surged by 46 percent Tuesday, making it the third-best first-day gain by an initial public offering this year.

    After pricing its shares at $13 each, Magma Design (LAVA: down $0.29 to $18.70, Research, Estimates) gained $5.99 to close at $18.99 on the Nasdaq.

    Magma's debut still trails the IPO of Simplex Solutions Inc. (SPLX: down $0.40 to $18.60, Research, Estimates), a provider of verification software, which gained nearly 77 percent last May. Global Power Equipment Group Inc. (GEG: down $0.10 to $15.51, Research, Estimates), a gas turbine maker, also rose by 57 percent that month, according to data from Dealogic, a New York-based investment banking research firm.

    Technology-based offerings, once the darlings of the IPO market, have stumbled this year, but a few have managed to perform well.

    Magma's offering Tuesday follows the performance of LogicVision Inc. (LGVN: down $0.61 to $9.10, Research, Estimates), also a provider of chip-design technology, which went public in late October and gained a slim 7 percent in its debut.

    The success of the Magma issue does not mean the return of tech IPOs, said David Menlow, president of IPOfinancial.com.

    "The door has been pried open for tech stocks, but it's not a welcome," Menlow said. "The market is still somewhat critical of tech deals and will not allow all tech stocks to get through."

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    Magma late Monday raised $63 million when it sold 4.85 million shares at $13 each via lead underwriter Credit Suisse First Boston. The company boosted the planned sale Monday to 4.85 million shares at $11-$12 each from 4 million at $9-$11 each.

    Cupertino, Calif.-based Magma offers software that cuts the time it takes to produce communications, networking and semiconductor chips. graphic

      RELATED STORIES

    Magma raises $63M ahead of debut - Nov. 19, 2001

    Simplex IPO shoots up 77% - May 2, 2001

    Instinet, Global Power IPOs advance - May 18, 2001





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