Intellon Shares Rise in Debut on Nasdaq

Friday December 14, 12:27 pm ET
Intellon Corp. Shares Gain More Than 20 Percent After IPO Prices Well Below Expectations


NEW YORK (AP) -- Shares of Intellon Corp. gained more than 20 percent in their first day of trading Friday despite the circuit-maker's initial public offering pricing well below the anticipated price range.

Shares rose $1.32, or 22 percent, to $7.32 in midday trading. After pricing at $6, the shares have traded as high as $7.90 and have yet to trade below $7.

The Ocala, Fla.-based company, which makes integrated circuits that enable high-speed communications over electrical wiring, had expected the offering of 7.5 million shares to price between $9 and $11 per share.

Based on the offering price, Intellon raised about $45 million, before expenses.

The company plans to use proceeds from the IPO for working capital, capital expenditures and other general corporate purposes, including potential acquisitions.

Intellon's products are designed to allow customers to share media among personal computers and consumer electronics throughout the home using existing electrical wiring.

For the nine months ended Sept. 30, Intellon narrowed its loss to $4.4 million, from $5.3 million in the prior-year period. At the same time, the company's revenue grew to $36.6 million, from $24.8 million in the first nine months of 2006.

Deutsche Bank Securities, Jefferies & Co., Piper Jaffray and Oppenheimer & Co. served as underwriters.

Intellon's shares are trading on the Nasdaq Global Market under the symbol "ITLN."