NEW YORK ( TheStreet) -- Borders ( BGP) is surging as it begins taking orders for its new e-reader. Borders will also launch an e-book store and software in June. The Kebo e-reader is cheaper than other similar devices like Amazon's ( AMZN) Kindle and Barnes & Noble's ( BKS) Nook, retailing at $149.99. The other two e-readers both sell for $259. Borders will begin selling the device in stores in August. Pre-ordered Kebos are expected to arrive on June 17. Shares of Borders are gaining 7.3% to $2.22 in afternoon trading. -- Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.