Updated from 2:42 p.m. EST
continued to build its digital mobile network Wednesday by cutting loose its affiliate,
, in an initial public offering.
Shares of Nextel Partners gained 10 1/8, or 50.6%, to close out its first day of trading at 30 1/8.
The gains were slightly less than those of a comparable company,
Alamosa PCS Holdings
jumped 66% on its first day of trading earlier this month. Alamosa is a wireless operator that uses the
Sprint PCS Group
Similarly, Nextel Partners, based in Kirkland, Wash., will use the Nextel brand and concentrate on the small and mid-sized markets throughout the U.S., allowing its parent company to focus on the larger cities. Nextel Communications owns 36.5% of Nextel Partners, according to the company's registration with the
Securities and Exchange Commission
Shares of Nextel Communications rose 2 3/4, or 2%, to close at 133 3/4.
Lead underwriter Goldman Sachs helped the company raise $470 million on the offering of 23.5 million shares. Nextel Partners had originally thought it would bring in about $376 million by offering shares in the $16 to $18 range.
According to IPO Monitor, a group that tracks new stocks, the average initial public offering this year raised $142.5 million and the average new issue jumped 92% on its first day. Nextel Partners' showing suggests that companies are becoming more aggressive in pricing their offerings, even as investors appear be a bit less voracious for new issues.
Together, the Nextels plan to connect the dots between all 100 major metropolitan areas and to offer access to digital two-way mobile data and Internet services by the end of 2000.
Nextel Partners now offers service to 46,000 digital phone subscribers in 12 of the 100 most populous cities throughout New York, Texas, Hawaii, and Pennsylvania. The company hopes to expand into Kentucky and Iowa in the first half of 2000.
Besides Nextel, other major investors include
DLJ Merchant Banking Partners
Madison Dearborn Capital Partners
Eagle River Investments