Rubicon Technology IPO shows initial success

Sapphire substrate manufacturer Rubicon Technology has raised about $80 million from its initial public offering.

Shares in Rubicon Technology, Inc, a manufacturer of monocrystalline sapphire substrates used in the growth of LEDs, jumped sharply on Friday November 16 on their first day of trading following the company's IPO.

The company's common stock is listed on the NASDAQ Global Market under the trading symbol "RBCN."

Rubicon announced its planned IPO back in September 2007 (see Rubicon files for $100m IPO).

The company announced a price of $14 per share for its initial public offering of 6.7 million shares of common stock. Of those shares, Rubicon Technology sold 5.5 million shares and a group of stockholders sold 1.2 million shares.

Shares peaked at $19.39 on Friday, and closed at $18.35 on Monday November 19.

The IPO raised $93.8 million for Rubicon. After deducting underwriting costs and other expenses, the company expects proceeds of about $80.3 million. After repaying a loan and security agreement with Hercules Technology Growth Capital Inc., which was about $6.1 million, Rubicon plans to use remaining proceeds for working capital, capital expenditures and other general corporate purposes.

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