OCPI Shares Soar After IPO
Shares of Optical Communication Products Inc. (Nasdaq: OCPI), which makes optical transmitters, receivers, transceivers, and transponders for metro area networks, rose to $20 shortly after an Initial Public Offering (IPO) today. The offering was priced at $11 and lead-managed by UBS Warburg. Optical Communication's shares ended the day up $6.88 to $17.88, a 62.5 percent gain.
The healthy reception to the offering shows there's still public demand for optical IPOs, despite the recent correction in the stock market (see IPO Filter Gets Finer). The company raised $115.5 million in its IPO.
OCPI, however, may be one of safer optical offerings to come to market (see Transceiver Vendor Plans IPO). It is an established, profitable company that was spun-off by optical components giant Furukawa Electric Co. Ltd., rather than a risky startup without profits. In 1999, OCPI had net income of $7 million on revenue of $36 million. --R. Scott Raynovich, executive editor, Light Reading http://www.lightreading.com