Feeds

IPO values Caldera at $1.2 billion

Strong debut defies NASDAQ jitters

  • alert
  • submit to reddit

The essential guide to IT transformation

Despite worries that the Linux stock boom may have run its course, yesterday's float by Caldera Systems more than doubled the price of the five million shares offered in difficult market conditions, partly resulting from the expected Fed rise in interest rates. NASDAQ dropped more than 200 points in the first hour, but Caldera trading did not begin until mid-morning, after the jitters had subsided and the NASDAQ index had recovered. Caldera's debut had been expected last week, but the NASDAQ fall evidently made the company hold back. Originally, the issue was to have been priced at $7 to $9, but this crept up to $14 by Monday afternoon when the issue was priced. The day's range was $23 to $33, and it closed up 110 per cent at $29 7/16, perhaps to the consternation of the early profit takers who sold when it was in the mid-twenties. Five million shares were offered, but the first day's trading showed a volume of more than 15 million. With more than 38 million shares outstanding, the capitalisation of Caldera went up to $1.27 billion, which is not bad for a company that had revenue of $3.05 million in 1999 (to 31 October) and net losses of $9.37 million. Caldera raised $70 million for 13 per cent of its shares. If there's a message, it is that the Linux boom is alive and well, although shares are now priced a little more realistically than in the past, perhaps reflecting greater maturity in both the market and investors. Meanwhile, Caldera will need to work to differentiate itself more in the marketplace. CEO Ransom Love made it clear yesterday that he sees his main competitor as Microsoft in the OEM space, and wants Linux to dominate as the Internet operating system of choice, he said in CNBC interview last night. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.