Tut Systems Makes Strong Debut

Even without a ".com" deal in sight, the IPO market had its busiest day of the year Friday, with three of the six debutantes notching solid gains.

High-speed telecommunications provider Tut Systems (TUTS) was easily the hottest deal of the day, rising 219 percent above its higher-than-expected $18 offering price.

The stock opened for trading at 49 5/8 - the price at which most investors were first able to buy the stock -and closed the day at 57 1/2 with more than 7.6 million shares changing hands.

Radio broadcaster Entercom Communications (ETM) also had a solid first day of trading, rising 37 percent above a $22.50 offering price.

Entercom priced 13.62 million shares at $22.50. That offering price was near the top end of a $21-to-$23 range, which had already been raised; original plans called for a 10.85 million-share deal at $18 to $21. Credit Suisse First Boston is heading the deal, the biggest of the day.

Analysts said Friday was an important day for other non-Internet companies hoping to go public in the near future.

"If some of these non-Internet deals get done and trade to a premium, that's sort of a green light for the IPO market, at least for the rest of the first quarter," said Ben Holmes, analyst at ipoPros, a Denver-based research firm.

Holmes particularly liked Tut Systems, which develops digital subscriber line technology that makes it possible for existing copper phone wires to transmit data at much higher speeds than normal. At Home's recent purchase of Excite has Wall Street once again focusing on the bright prospects for broadband Internet access.

Tut has also developed a technology called Home Run, which allows households to link up their desktops and other computing equipment in a miniature version of a corporate intranet.