more than doubled in its trans-Atlantic debut, much to the expectation of the semiconductor maker's chief executive, Ulrich Schumacher, who appeared at the Frankfurt stock exchange dressed as a race car driver.
The American depository receipts of Infineon, a spinoff of German industrial giant
, surged 36 1/16 to finish trading at 70 Monday.
Infineon raised $5.2 billion from an offering of 154 million shares, making it the largest float of public shares since
offering in 1996, which brought in 10 million euros, or $9.7 billion. The total value of Infineon's offering represents about 29% of the company and is worth more than 6 billion euros from the issue price. The size of the float is especially surprising for a German business, whose shares are usually closely held within the company.
On the Frankfurt Stock Exchangge, Infineon surged to 70.26 euros, from its initial offering price of 35 euros.
Siemens currently owns about a 74% stake in Infineon but plans to reduce its stake to being a minority holder by 2001.
The offering in the U.S. and Germany was underwritten by
Deutsche Bank Alex Brown
Infineon said U.S. computer maker
would invest $250 million in Infineon shares by means of a private placement. The two companies would work together on producing DRAM memory chips.
The company operates five business units: automotive & industrial, communications & peripherals, memory products, security & chip card integrated circuits, and wireless products. It already has partnerships for development with other huge technology companies like
Infineon posted a big loss of about $600 million two years ago during a slump in the semiconductor market but returned to profitability in 1999.
An effusive Shumacher told a news conference in Frankfurt that he expected his new company will, at some point, graduate to the
, the German equivalent of the blue-chip companies in the Dow.