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.
Battle of the Bookstores
Billionaire Burkle Sues Barnes & Noble

If you liked this article you might like

Will 'Say on Pay' Become the New Normal for CEOs?

Borders Will Begin Liquidating This Week

Borders Will Begin Liquidating This Week

10 Bricks-and-Mortar Stores That Beat Online

Borders' Mistakes: Chapter by Chapter

Borders' Mistakes: Chapter by Chapter

Borders in Talks to Sell Half Its Stores

Borders in Talks to Sell Half Its Stores