Conexant Systems Already Sailing Weeks Before Launch

It’s nearly four weeks before Conexant Systems Inc.’s official launch on Wall Street, but already the company’s stock is showing signs that it will surpass analysts’ expectations.

Debuting Wednesday at $13 a share, the stock--which was traded on a “when-issued” basis--soared as high as $22 in midday trading before closing at $17.87. On Thursday, the stock price fell $1.63 a share, closing at $16.25.

Several research firms have started covering the Newport Beach-based semiconductor company, but few of them had pegged the company’s stock to trade higher than $8 a share. Jeff Lipton, an industry analyst at Hambrecht & Quist who described Conexant as a “promising transition story,” had predicted the company’s stock would hit the high teens.

“They have a lot of great process technology and a unique combination of skills,” Lipton said. “Right now, they’re doing all the right things.”

When-issued shares trade like traditional shares, but on the condition that Rockwell International Corp. will carry through with its plans to spin off its semiconductor unit.

Conexant is expected to begin regular trading Jan. 4 on the Nasdaq national market. At that point, when-issued shares would convert to Conexant stock.