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In this shared blog, David Weisberger says a recent WSJ article is wrong and that traders do need to purchase faster and more comprehensive market data to avoid being fined for violating "Best Execution" obligations.

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November 1, 2001

IPO Renewal and Hope

By Frank Musero

The IPO market is showing signs of a possible rebirth.

It comes after a disastrous third quarter when only 14 deals made it to market. The fourth quarter opened on a hopeful note.

It saw its first IPO since August 13: Given Imaging Inc., an Israeli-based maker of ingestible cameras' used to monitor gastrointestinal health problems (Nasdaq: GIVN).

Positive Result

The deal raised $60 million via Lehman Brothers and Credit Suisse First Boston. The underwriters sold five million shares at $12 each in early October. That's not bad in the current climate, considering the company had originally planned to raise $65 million, and sell the shares at $13.

Given Imagining had a good start on day one, initially trading at $12.60, reaching a high of $13.44.

It never fell below its offer price of $12. And it closed on its first day at $12.47, up 3.9 percent, with about 3.9 million shares changing hands.

However, the company, which won FDA approval for its product, still has not reported any sales for the product in the U.S.

It reported an operating loss of $7.4 million for the first six months of 2000.

Still, Given stated that it plans to use proceeds from the IPO to establish offices and expand sales. It will also use the money raised to finance research and development as well as go ahead with systems development.

That Given Imaging didn't tank on the first day of trading will probably encourage other companies to try the IPO market this quarter.