WorldGate Communications Inc, the Bensalem, Pennsylvania company that provides internet access over cable television lines got its IPO away yesterday at $21 per share, raising $105m before expenses for the company, after the lead manager had hiked the price target to $17 to $19. The company sold 5.0 million shares. WorldGate’s initial filing indicated the company expected to raise about $64m before expenses (02/10/99).
The shares opened at $30 around lunchtime, fell to the mid-20s but recovered and closed up $13.00 at $34.00, a 62% premium on the offer price. WorldGate was established by former executives of set-top box maker General Instrument Corp in 1995 and has deals with both GI and the other principal box maker, Scientific- Atlanta Inc, which between them control about 90% of the US cable set-top box market. They include the WorldGate software in their boxes so no extra hardware is required. The lead manager was Gerard Klauer Mattison & Co Inc.
