Limelight Raises IPO Price
Limelight will begin trading tomorrow morning at 11:00 a.m. on Nasdaq under the ticker symbol "LLNW" with anticipation of it being another hot tech IPO. "I think there's a strong indication that it will be a well-received IPO as indicated by management's decision to raise the price," says Colby Synesael of Merriman Curhan Ford & Co. . Synesael pointed to the success of competitors Akamai Technologies Inc. (Nasdaq: AKAM) and Savvis Communications as indicators of the industry's strength.
Tech IPOs have been enjoying a run of success as of late most recently shown by Infinera Corp. (Nasdaq: INFN)'s stock debuting at $16 and heading north of $19 in its first day of public trading. (See Infinera Goes Out – And Up.)
Content delivery networks are perhaps the hottest of those technologies right now with the Internet video phenomenon fueling the fire. But there's a concern, as noted in Limelight's S-1 filings, that telecom carriers may ultimately decide to provide their own content delivery network services as a way to save money and get the most from their networks.
"I completely disagree with that," says Synesael. "When you look at the scalability that you get by outsourcing your services, you can see the benefits."
Limelight would not get into any specifics of its IPO beyond what is already outlined in the S-1.
— Raymond McConville, Reporter, Light Reading