Entrust Technologies Inc. has joined the Internet IPO club, raising $125 million.

The Richardson, Tex.-based company, spun out of Northern Telecom of Canada in 1997, sells digital certificate and public key infrastructure systems for on-line data encryption and authentication.

The initial public offering was slated for 7.1 million shares but was raised to 7.8 million in the face of heavy demand.

The underwriter, Goldman, Sachs & Co., set the offering price at $16 a share. On Tuesday, when the shares first traded, they opened 38% higher, at $22.125. They closed Friday at 17.1875.

Analyst Bill Burnham of Credit Suisse First Boston said the successful offering was a positive sign for the emerging electronic commerce market. It closely mirrored the IPO of Entrust's digital certification competitor, Verisign Inc.

On its first trading day, Jan. 30, Verisign's stock rose 87%, to $26.25. It closed at $31 Friday, up $2.4375 last week.

Mr. Burnham said Entrust will have the necessary "freedom and financial flexibility" to compete, while attracting talent with the promise of stock options.

Mr. Burnham said he was surprised at the strong showing in what had been a sluggish IPO market.

"Investors are less willing to take a chance on new small-cap issues. With the market skittish in general, it's hard to get IPOs out of the gate."

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