Content area
Full Text
3Dfx Interactive Inc.'s (TDFX) impending acquisition of STB Systems Inc. (STBI) did little to hamper Nvidia Corp.'s (NVDA) stock price when the company commenced an initial public offering on Jan. 22 for 3.5 million shares.
The fact that Nvidia stands to lose its biggest customer (STB accounted for more than 30 percent of the chip designer's revenue last year), had little or no impact on the final share price set for the IPO. In fact, Morgan Stanley Dean Witter & Co. increased the initial selling price twice, from an expected $7 to $9 and again to $11, finally settling on $12.
On the first day of trading, the company's stock closed at $19.69. On Jan. 28, after five days on the market, the stock closed at $19.94.
The company also granted underwriters a 30-day option to purchase 525,000 additional shares.
Nvidia's position in the PC OEM business is so strong that CFO Christine Hoberg believes too much reliance on a board manufacturer would actually slow down the...