The initial public offering of CacheFlow (Nasdaq: CFLO), which makes Internet caching appliances that speed up content delivery, got off to a shot-from-a-cannon start on Friday. The offering was priced at $24 a share, nearly twice the high end of the originally proposed range of $11 to $13 and well above the revised range of $18 to $20. The stock closed its first day of trading up 102-3/8 to 126-3/8, a rise of nearly 427 percent. CacheFlow stock opened at 113 and climbed as high as 139-1/4.
CacheFlow’s Friday showing was the sixth-best first-day performance ever, according to Hoover’s Online, which also reported last week that nine of the top first-day performances have occurred in 1999. Like its strategic partner Akamai Technologies (Nasdaq: AKAM), which is number five on the list, CacheFlow could keep climbing because it is in a sector that investors are infatuated with right now. Another plus for CacheFlow, whose customers include Hewlett-Packard, Xerox and Delta, is that Netscape co-founder Marc Andreessen is on its board of directors.
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