4.2% boost for second-largest DRAM maker.
Shares of Qimonda, the world’s second largest DRAM maker by market share, rose 4.2% on its stock market debut Wednesday.
The company, a spinoff from Infineon Technologie, had lowered the offering price on its shares to $13 each just ahead of the listing, below the $16 to $18 it had been seeking earlier.
The shares ended the day at $13.54 on the New York Stock Exchange, while Infineon’s U.S.-listed shares increased 2% to $10.74.
The company may have lowered the initial share offering price to ensure a strong debut, said Kenneth Lee, a chip industry analyst at Primasia Securities Co. in Taipei. Sentiment for tech sector shares remains weak globally, and there have been some high-profile disappointments so far this year.
A prime example is VoIP pioneer Vonage Holdings Corp., which saw its shares close at $14.85 when it listed in May, after being sold to investors and customers for $17 per share. The stock closed at $6.81 on Wednesday, nearly a third of its original price.
The debacle has put Vonage in a tough position with customers, some of whom have refused to pay for shares they ordered. Vonage has also faced shareholder lawsuits.
Such troubles with initial public offerings make it important for companies to strike an offering price low enough to attract interest and sustain some upward momentum in the share price. Qimonda said it lowered the price in part because of a challenging market environment.
