Internap Corporation INAPQ

IPO today

[queue]

InterNAP closes just below $53 9/29/99 9:25:00 AM By Jeanne Lang Jones, dbusiness.com UPDATE SEATTLE, Sept. 29 (dbusiness.com) - Seattle-based InterNAP Network Services Corp. closed its first day of trading today at $52.97, more than double its initial public offering price of $20. The stock ranged between $53 and $73. Volume was 15.5 million shares. After raising its pricing range from $13 to $15 per share to $17 to $19 per share yesterday, InterNAP (Nasdaq: INAP) had settled on an offering price of $20 per share and increased its offering from 8.7 million shares to 9.5 million shares. The company provides private network access points, or NAPs, so customers can avoid the traffic jams at the public NAPs where carriers handoff Internet traffic. InterNAP promises faster delivery of corporate e-mail with less data lost during transmission. More than 130 customers use InterNAP's speedy Internet service, which offers connections at speeds from 1.5 Mbps to 155 Mbps. Amazon.com, Nasdaq and Go2Net are clients. InterNAP, which has 221 employees, had a net loss of $7million on revenue of $2 million last year. It has an accumulated deficit of $25.7 million. The offering is being underwritten by Morgan Stanley Dean Witter & Co., CS First Boston Corp., Donaldson, Lufkin & Jenrette Inc. and Hambrecht & Quist LLC. The underwriters have an over-allotment option of 1.3 million shares. The IPO could raise as much as $216 million for the company. Concurrent with or immediately after InterNAP's IPO, the company will sell strategic partner Inktomi Corp. 1.53 million shares in a private placement that will raise an additional $19 million for the company. In addition, seven shareholders also will receive warrants for 100,000 shares as part of a standby credit agreement.