“It’s not your ordinary high-tech IPO.”
“The initial public stock offering of Linux specialist Red Hat,
scheduled for today, will be not only a seminal event for the
Durham, North Carolina, company but also an important test of the
‘open source’ operating system’s broad appeal. Red Hat’s success
could pave the way for VA Linux Systems, Caldera Systems,
Linuxcare, and Cygnus Solutions to go public as well.”
“Initial signs seem positive. The company released 6 million
shares to institutional investors yesterday, expecting a price
range of $10 to $12, meaning the stock offering would raise between
$60 million and $72 million to finance Red Hat’s expanding
operations. But the company increased that estimate to $12 to $14
per share, meaning it would raise as much as $84 million.”
“Public trading on the Nasdaq market is to begin today,
according to a spokesperson for Goldman Sachs, an investment bank
underwriting the initial public offering.”