Utek raises $6-million in public offering

By MICHAEL BRAGA

© St. Petersburg Times, published October 26, 2000

Utek Corp., a Plant City company that buys technology and sells it to upstart companies in return for stock, has become the first Tampa Bay company to go public this year.

Utek's stock price rose 3.1 percent in its first day of trading, a tiny gain compared to other technology companies that have gone public in recent years. But it was a respectable performance in comparison to companies that have gone public in October's volatile market conditions.

With the help of its Denver underwriter, Schneider Securities, Utek was able to raise $6-million by selling 1-million shares at $6 a pop. The money will allow Utek to implement plans that were delayed by stock market conditions.

According to a statement issued by Utek on Wednesday, the company plans to use 80 percent of the proceeds from the offering to "acquire, develop and transfer new technologies to the market."

Specifically, that means the company will be able to complete its purchase of technology that will be used by six customers -- companies that are planning to use the technology to improve water desalination techniques, the analysis of body tissue, the transfer of voice-mail messages to e-mail messages and the measurement of surfaces.

"They have an eclectic portfolio of diversified technologies," said Irv DeGraw, an IPO analyst with WorldFinanceNet.com in Sarasota. "They don't appear to focus on any particular area."

For DeGraw, the lack of concentration is a weakness. It is also a possible reason why the company has not been greeted with great enthusiasm by investors.

Utek's stock, traded under the symbol UTOB, closed Wednesday at $6.19 a share.

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