The initial public offering of NetCreations (Nasdaq: NTCR), which offers e-mail marketing solutions for its clients, got off to a respectable start on Friday. The IPO was priced at $13 a share, and the stock closed its first day of trading at $20, a gain of nearly 54 percent.
NetCreations looks like a company to watch because e-mail marketing has proven to be more effective than many other forms of online promotion. NetCreations has deals with NetZero and LinkExchange, among others, and it is an Internet company that is actually profitable. NetCreations had net income of more than $605,000 and revenue of nearly $3.5 million in 1998. Meanwhile, competitor Yesmail, which had revenue of nearly $4.6 million in 1998, had a net loss of more than $1.7 million during the same year.