FRAMINGHAM (03/03/2000) - The stock of the company that makes the Palm personal digital assistant soared as high as $165 per share in its first day of trading on the Nasdaq Stock Exchange yesterday but settled back into the 90s and opened at $97.25 per share today.
Parent company 3Com Corp. in Santa Clara, Calif., had settled on an offering price of $38 per share for the much-anticipated Palm Inc. initial public offering.
The popular Palm device had overshadowed the company's primary business, 3Com officials said at a user conference in October. They said separating the two would allow 3Com to better focus on its strength, which the company said is enterprise networking.
3Com spokesman Brian Johnson said the company would retain a 90% interest in Palm Inc. The offering has already turned into a cash cow for 3Com. This morning, Palm Inc. had a market cap of $53.1 billion, 1.8 times that of its parent company.