New-York-based online community Theglobe.com Inc followed EarthWeb Inc as the phenomenal IPO story of the week soaring nearly 1000% in its maiden session. The 3.1 million shares, which had been priced at $9, within its announced range of $8-$10, opened at $87 then soared as high as $97. They finally came down to earth somewhat, sinking to $59 before closing the day at $63.50, a 606% jump from the offering price. The move has made the company the proud owner of the most successful opening day ever for an issue. The previous best was a 249% gain by Broadcast.com Inc after its IPO. By contrast, EarthWeb finished its first day at 248% over its offering price. The volume board saw 15.7 million Globe.com shares change hands, making it the Nasdaq’s fourth most-active stock for the day. The company originally filed for the IPO in July, but delayed it last month due to concerns over market conditions – and appears to have made the right choice in timing. Its original price range was to have been $11-$13. The offering raised $27.9m before costs and, based on the closing price of $63.50, the company is now valued at over $620m – not bad for an outfit that has seen revenues of only $2.7m for the nine months ending September 30 and posted a loss of $11.5m for the same period. Lead underwriter for the offering was Bear Stearns & Co and the shares are trading under the symbol TGLO.
