leapt as much as 189% in its trading debut on Friday, taking advantage of the growth in the semiconductor industry and the cachet of being a profitable company.
At the market close, OmniVision shares finished at 34, up 21 or 162%. The company raised $65 million with the issue, offering 5 million shares priced at $13 each, above the trading range of $9 to $11.
"The parameters of the issue were quite good," said Yusuf Haque, an analyst at financial portal
. "There were very few shares offered and the pricing was quite low."
The company, based in Sunnyvale, Calif., designs chips that are used in cameras, computers and other consumer electronics products, with its Image Sensors products enjoying favor with communications companies.
Another factor in OmniVision's success is its profitability, having earned $8.5 million through April 30. "Profits are something that investors are looking at as a top priority," Haque added.
There are concerns that the company's top competitors are rather overwhelming, with
Matsushita Electric Industrial
, both of Japan, at the fore. In addition, there are concerns that the semiconductor market may soon
slow. But Haque dismissed that worry, saying, "The chip market is very large. There are many components to it and they don't act in tandem all of the time."
The issue was underwritten by lead manager
as well as
Prudential Volpe and Needham & Co.