CAPSTONE TURBINE UP 200% IN INITIAL PUBLIC OFFERING.

Byline: Jason Z. Cohen Staff Writer

WOODLAND HILLS - Heralding the apparent resurgence of the market for initial public offerings, Capstone Turbine Corp. gained 200 percent Thursday in its debut on the Nasdaq stock exchange.

``We are clearly seeing that a bottom has been defined,'' said David Menlow, president of IPOFinancial.com. ``As to whether it's a resurgence, it's certainly not a reinstatement of the way things used to be.''

For well-run companies with solid products, the IPO market is not as perilous as it has been in the past, Menlow said.

Capstone, which makes microturbines that power buildings and vehicles, priced its 9.1 million share initial offering at $16 per share, the top of its proposed range.

Shares rose steadily through the day to close at $48 per share.

The successful IPO is a boon to lead underwriter Goldman, Sachs & Co., Menlow said.

``Today was Goldman's day to stick their tongue out at the other underwriters,'' he said. ``This is another strong notch in the belt of Goldman, Sachs.''

Capstone Turbine makes microturbines that can be used in hybrid vehicles. The company's product has been in commercial use since July 1999 in buses in Los Angeles, Atlanta, Nashville and Tempe, Ariz.

The units run on a number of gaseous and liquid fuels and use an air bearing to lubricate the one moving part, the spinning turbine.

The air bearing creates a high-pressure pocket of air for the turbine that acts as a bearing but does not require lubricants such as oil or grease.

The company's turbines also can be used to generate power for homes and businesses. Its current product generates 30 kilowatts of electricity, enough to power a typical convenience store.

A 60-kilowatt system is expected to be commercially available in a few months, the company said.

Keith Field, Capstone Turbine spokesman, declined to comment Thursday, citing the customary quiet period imposed by the Securities and Exchange Commission on companies at the time of their initial public offering.

The offering raised $145.4 million for Capstone, which said it plans to use the proceeds to buy equipment, expand its sales and marketing and develop its products.

The company had a net loss of $29.5 million on revenues of $6.7 million in fiscal 1999. In the first quarter of 2000, the company lost $7.8 million on revenues of $3.74 million.