USinternetworking Inc., an Annapolis company that offers business software over the Internet, has become Wall Street's latest upstart high-tech darling.
In its first day of public trading yesterday, the company saw its stock zoom from an opening price of $21 to close at $57.50 on the Nasdaq market. USinternet-working was the 10th most active stock on U.S. markets, with 12.68 million shares changing hands.
This near-tripling of USinternetworking's value came in spite of the fact that the company was founded just a year ago January and has yet to turn a profit. By now, though, markets have proved repeatedly that neither infancy nor red ink will keep a technology stock from going into orbit.
The initial offering raised $126 million, with 6 million shares sold at the starting price.
"With proceeds from our offering, we plan to expand our market opportunities, including expanding and enhancing our network and facilities, as well as adding additional products and services," Christopher R. McCleary, USinternetworking's chairman and chief executive officer, said in a statement.
USinternetworking has 450 employees and has said it plans to expand to more than 1,000 employees by the end of this year.
Pub Date: 4/10/99