Modem Media.Poppe Tyson joined the growing list of stellar Net IPO performers Friday, when its stock more than tripled in its first moments on the market.
At the same time, shares of Internet service provider Pacific Internet (PCNTF) surged 185 percent on its first day of trading.
Shares of Modem Media.Poppe Tyson, based in Westport, Connecticut, jumped to US$55.13 from a pre-opening price of $16. By late afternoon, the stock had settled back to $43.50.
The company raised $41.6 million in the offering, which was underwritten by BancBoston Robertson Stephens.
The big first day pop was practically a foregone conclusion after Robertson Stephens boosted the offering price from $11 to $16, indicated strong demand from institutional investors.
Like most of the Net firms that have preceded it, Modem Media.Poppe Tyson (MMPT) has yet to turn a profit, losing $2 million on revenues of $30.4 million through the first nine months of 1998.
Still, the company is widely considered one of the top firms in the interactive-marketing business. Like its closest competitor, US Web/CKS (USWB), Modem Media.Poppe Tyson helps companies develop online ad campaigns, build flashy Web sites, and plan e-business strategies.
The company used to be known by the comparatively palatable moniker Modem Media before it merged with competitor Poppe Tyson last year.
Separately, investors had a warm reception for Pacific Internet, a Singapore Internet service provider.
At one point, shares jumped as high as $88 from the IPO price of $17 per share, before settling back to $49 at the close.
The offering, which had been revived after a postponment late last year, raised $51 million. Lehman Brothers was the lead underwriter.
Bucking a Net trend, Pacific Internet, with some 187,000 subscribers, actually turns a profit.
