Opnext, a maker of laser diodes, optical modules and pluggable modules, is expected to go public this week, and will trade under the symbol OPXT. Opnext is the second optical component company to come public in the last four months. Optium Corporation (NASDAQ: OPTM), a Chalfont, Pa-based company, came public in October 2006 at $17.50 and is now trading at $24.95.Opnext has been funded by Hitachi and venture capital firm Clarity Group. Hitachi will be transferring some 670 patents to this start up.
The stock is supposedly going to be priced around $14 per share. With only two optical companies recently coming public, as one would expect, the financials for the company are pretty solid.
Supposedly, Opnext is strong in the 10-Gigabyte optical space and also has product for 40 gigabyte technology.
These optical components are very cyclical, as are most new higher growth industries. The upcycle in this space appears to be still in its early stage. It may be worth a spec on this IPO.
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