“As demand for Andover.net (Nasdaq: ANDN) was skyrocketing in
the pre-IPO bidding process, W.R. Hambrecht was trying to determine
the most accurate opening price for the Web-based Linux content
company. After refiling three times as demand from investors kept
increasing, Hambrecht wanted to close the deal without delaying any
longer….”
“But if Andover.net’s performance during its IPO is any
indication, people are starting to care. The stock opened at $18 a
share with a clearing price of $24, meaning that anyone who bid
more than $24 for the stock was allotted the requested shares at
$18 a share. The stock then more than quadrupled on opening day,
closing at $77. After the dismal performance of Salon.com’s
(Nasdaq: SALN) IPO back in July, W.R. Hambrecht needed a success to
prove that the Dutch auction model does indeed work….”
“Andover.net chose to work with W.R. Hambrecht because,
according to Bill, philosophically they meshed. W.R. Hambrecht was
able to extend the bidding process to all Linux developers, and for
a company that relies on its developers for its success, that makes
sense. “They [the management at Andover.net] are people who
like to do things differently,” explained Bill. “They wanted to be
very sensitive to the 2 million developers who use Slashdot, and
that’s why they are using us. Our system allows their base to come
in and get stock. That’s really important.”