Claimsnet.com IPO Soars, Outshining Debut by PLX
NEW YORK -- Two high-tech initial public offerings presented more evidence of investors' preference for anything related to the Internet.</br></br>Shares of Claimsnet.com Inc., an electronic-commerce company that helps health-care companies process transactions on the Internet, doubled in their first trading day on the Nasdaq Stock Market. Meanwhile, PLX Technology Inc., which makes semiconductor devices and software and has a solid history of earnings and revenue growth, made a less impressive debut on the Nasdaq.</br></br>Investors appeared willing to overlook the fact that Claimsnet.com is losing significant sums of money and is barely generating revenue. "It's distressing," said David Menlow, president of the IPO Financial Network in Millburn, N.J.</br></br>Analysts said the latest trend appears to be successful offerings from Internet companies that not only are posting losses, but hardly have revenues.</br></br>PLX priced 3.3 million shares at $9 apiece, $1 above the projected sale price. The stock closed at $12.125. Claimsnet.com priced 2.5 million shares at $8, the midrange of the estimated spread of $7 to $9. The shares closed at $16.50.