Despite a lack of detailed information about its technology, absolutely no revenue and a looming lawsuit, optical networking play
managed to rise as much as 172% in its trading
debut on Friday.
Shares of the company were up 46, or 128%, to 82 1/8 in afternoon trading. Corvis finished up 48 11/16, or 135%, at 84 11/16. The $1.14 billion issue was priced at $36, well above the $28 to $30 price range which had been raised from $13 to $15.
Based in Columbia, Md., Corvis is a long-haul optical-transport designer that has developed a range of products which can shoot beams of light from one side of the country to the other more quickly and efficiently than existing systems.
The key word there is "optical." Any company that can claim to transmit information over the Internet using optical networks, or pulses of light modulated by lasers, is a surefire winner these days. Optical networks are more efficient than copper networks, used to connect most homes to the telephone network, that use pulses of electricity.
Investors are seemingly unfazed by a lack of detailed information about Corvis' technology and the company's lack of revenue, though three major telecom carriers are testing its equipment. There's also the matter of a lawsuit brought last week against Corvis by
, alleging patent infringement.
Those investors include institutions and individuals who sought
backdoor plays to the Corvis offering by snapping up shares in
, which owns Corvis warrants, and
, which also owns shares of Corvis. Meanwhile, Comdisco shares, which leases computer equipment, rose 29% between July 11 and July 26, partly because of Corvis' anticipated IPO. Canada's Roctest, a maker of products used to take measurements in the construction of bridges and tunnels, is up 191% since the beginning of June.