Storm warnings are flying that hurricane season is arriving early in the Caribbean. But farther north in New York City, the IPO market has also caught some wind.

Here’s what has been ticking: The Nasdaq Composite Index, the barometer of the IPO market, closed at a new 2005 high on Thursday, July 14 at 2,152.82. It was up 13.1 percent from 1,904.18, its 2005 low set on April 28.

The Nasdaq’s strong recovery is giving life to the IPO calendar.

But there have been other early warning signs that something good will swell. Those signals have been flying out of the U.S. Securities and Exchange Commission’s filing window in Washington, D.C.

Since April 1, 2005, the IPO pipeline experienced a floodtide of filings. Over 115 companies have filed plans to go public since then. They hope to raise $18.4 billion. That’s the first step in going public.

Since May 1, 2005, almost 90 companies set proposed offering terms to price their coming IPOs. They are looking to raise $14 billion. That’s the second step in going public—moving deals from the pipeline to the calendar. It wasn’t always the case.

Changes in Latitude

Before the summer of 1998, when a company filed to go public, many would state the number of shares that would be offered to investors along with a price range. The price range was normally pegged to be a discount of about 15 percent below the market value of similar companies already being traded. The discount was to ensure the IPO would trade at a premium after it was priced.

Of course, if the underlying stock market sold off before the IPO came to market, the discount evaporated. That made the deal overpriced and difficult to get done. That’s what happened in the fall of 1998.

The Nasdaq Composite Index had run up to a then all-time closing high on July 20, 1998, of 2,014.25. Then Mr. Bear Market crawled into town. About three months later, the Nasdaq Composite Index bottomed out at 1,419.12 on October 8, 1998—down nearly 30 percent from its previous high.

Many of the companies that had filed to go public before the October 1998 sell-off saw their proposed terms become unrealistically high. As a result, the IPO production line dried up.

That taught Wall Street investment bankers a lesson.

It’s OK to file, but don’t post proposed offering terms until the window of opportunity (i.e., a strong stock market) is open for the IPO to be launched.

Changes in Attitude

Since the fall of 1998, going public has became a four-step process: The first step is to file for an IPO. At a later date, the second step is to set proposed offering terms. At a still later date, the third step is to set an offering date. And at an even later date, the fourth step is to actually price the deal.

Once again, it takes a strong stock market to make the last three steps fall into place, much like the current IPO marketplace is in the process of doing. Today’s forward IPO calendar is building. This week’s IPO calendar—the week of July 18—is an example.

On July 1, the forward IPO calendar for the week of July 18 listed two deals expecting to raise $103.2 million. Also listed were another 14 deals (with proposed terms, but no offering dates) aiming to raise $2.15 billion.

On July 15, with the Nasdaq Composite Index in new 2005 high territory, the forward IPO calendar for the week of July 18 listed seven deals (with proposed offering terms) expecting to raise $988 million—close to a billion dollars. Also listed were another 27 deals (with proposed terms and some with offering dates) hoping to raise $2.95 billion.

Inside This Week’s IPO Calendar:

There are six new faces at the IPO window for the week of July 18, and a carryover from past weeks. They hope to raise $988 million. That’s right, bankers and their clients have their hopes set on almost $1 billion. Not bad for the middle of the so-called “summer doldrums,” right?

There are two IPOs reportedly on the IPO professionals’ “most-wanted” list. Those are: Adams Respiratory Therapeutics and Hittite Microwave. And there are two brand-name companies on the calendar: Diamond Foods and Maidenform Brands.

The ‘Most-Wanted’ Deals:

—Adams Respiratory Therapeutics plans to price 7.08 million shares at $14 to $16 each to raise $106.2 million. The company will offer 5.33 million shares and selling shareholders will offer 1.75 million shares. The IPO is to start trading on Thursday, July 21.

Based in Chester, New Jersey, Adams Respiratory Therapeutics is a specialty pharmaceutical company focused on late-stage development of pharmaceuticals to treat respiratory disorders. The company markets two products under its Mucinex brand and expects to launch four additional products (already approved by the U.S. Food and Drug Administration) over the next two years. Formed in 1997, Adams Respiratory Therapeutics has about 176 employees.

The Underwriters:Merrill Lynch and Morgan Stanley are joint-lead managers. Acting as co-managers are Deutsche Bank and RBC Capital Markets.

Venture Capitalists: EGI, PerseusSoros BioPharmaceutical Fund, TullisDickerson & Co., Talon Opportunity Fund, Marquette Venture Partners, and Merrill Lynch Ventures.

52-Week Percentage Change:

Dow Jones U.S. Pharmaceutical Index: down 6.63 percent

Nasdaq Composite Index: up 12.6 percent

Passing Observations:

Solid sales growth: Adams Respiratory reported net sales of $61.3 million for the year ending June 30, 2004, up from $35.8 million for the same period a year prior.

Profitable pharmaceutical IPO: Adams Respiratory reported net income before accretion of preferred stock of $35.8 million for the year ending June 30, 2004, up from a net loss of $22.6 million for the same period the prior year.

For the nine months ending March 31, 2005, Adams Respiratory reported net income before accretion of preferred stock of $24 million on net sales of $121 million, up from net income before accretion of preferred stock of $19 million on net sales of $49 million.

—Hittite Microwave plans to price 4.5 million shares at $14 to $16 each to raise $67.5 million. The company will offer 2.7 million shares and selling shareholders will offer 1.8 million shares. The IPO is to start trading on Friday, July 22.

Based in Chelmsford, Massachusetts, Hittite Microwave develops high-performance integrated circuits, modules and subsystems for technically demanding radio frequency, microwave, and millimeterwave applications. With sales offices in China, Germany, South Korea, and the United Kingdom, the company serviced more than 2,300 customers in a variety of applications and end-markets worldwide. Formed in 1985, Hittite Microwave has about 195 employees.

The Underwriters:Lehman Brothers is the lead manager. Acting as co-managers are Needham, Piper Jaffray, and Thomas Weisel Partners.

Venture Capitalists:Summit Ventures and affiliates.

52-Week Percentage Change:

Dow Jones U.S. Semiconductor Index: up 7.16 percent

Nasdaq Composite Index: up 12.6 percent

Passing Observations:

Solid sales growth: Hittite Microwave reported revenues of $61.7 million for the year ending December 31, 2004, up from $42 million for the same period a year prior.

Profitable: Hittite Microwave reported net income of $13.4 million for the year ending December 31, 2004, up from net income of $7.2 million for the same period a year prior.

The Brand Names

—Diamond Foods plans to price 5.33 million shares at $14 to $16 each to raise $80 million. The IPO is to start trading on Friday, July 22.

Based in Stockton, California, Diamond Foods is a specialized, branded food company distributing culinary, snack, in-shell and ingredient nuts under the Diamond of California and Emerald of California brand names. The nuts are sold in over 60,000 retail locations in the United States and in over 100 countries. Formed in 1912, Diamond Foods has about 653 employees.

The Underwriters: Merrill Lynch is the lead manager. Acting as co-managers are Piper Jaffray and Harris Nesbit.

Venture Capitalists: None

52-Week Percentage Change:

Dow Jones U.S. Food Products Index: up 4.43 percent

Nasdaq Composite Index: up 12.6 percent

—Maidenform Brands plans to price 10 million shares at $14 to $16 each to raise $150 million. The company will offer 3.375 million shares and selling shareholders will offer 6.625 million shares. The IPO is to start trading on Friday, July 22.

Based in Bayonne, New Jersey, Maidenform Brands is a global intimate apparel company of established, well-known branded products including bras, panties, and shapewear. The company distributes its products through multiple distribution channels, such as department stores, national chains, mass merchants (including warehouse clubs), specialty stores, off-price retailers, its company-operated outlet stores, and its web site. Formed in 1920, Maidenform Brands has about 2,000 employees.

The Underwriters:UBS Investment Bank and Credit Suisse First Boston are joint-lead managers. Acting as a co-manager is Goldman Sachs.

Venture Capitalists: Ares Corporate Opportunities Fund, Entities affiliated with Oaktree Capital Management: OCM Opportunities Fund II, Columbia/HCA Master Retirement Trust, and Entities affiliated with AIG: AIG PEP III Direct, AIG Private Equity Portfolio II, and AIG Private Equity Portfolio.

52-Week Percentage Change:

Dow Jones U.S. Clothing & Accessories Index: up 18.4 percent

Nasdaq Composite Index: up 12.6 percent

Passing Observation:

Insiders will be selling about two-thirds of the common stock being offered to investors.

The rest of the week’s IPO calendar:

—Consolidated Communications Illinois Holdings plans to price 15.7 million shares at $14 to $16 each to raise $235 million. The company will offer 6 million shares and selling shareholders will offer 9.7 million shares. The IPO is to start trading on Friday, July 22.

Based in Mattoon, Illinois, Consolidated Communications is a rural local exchange company providing communications services to residential and business customers in Illinois and Texas. The company believes it is the 15th-largest local telephone company in the United States with about 253,071 local access lines and 30,804 DSL lines in service. Formed in 1894, Consolidated Communications has about 1,280 employees.

The Underwriters: Credit Suisse First Boston is the lead manager. Acting as co-managers are Citigroup, Banc of America Securities, Deutsche Bank Securities, Lehman Brothers, and Wachovia Securities

Venture Capitalists:Providence Equity and Spectrum Equity

52-Week Percentage Change:

Dow Jones U.S. Fixed Line Communications Index: up 6.18 percent

Nasdaq Composite Index: up 12.6 percent

—Genco Shipping & Trading plans to price 11.5 million shares at $24 to $27 each to raise $293.3 million. The company will offer 10.5 million shares and selling shareholders will offer 1 million shares. The IPO is to start trading on Thursday, July 21.

Based in New York City, Genco Shipping & Trading is a newly formed drybulk carrier operating 16 vessels transporting iron ore, coal, grain, steel products, and other drybulk cargoes along worldwide shipping routes.

The Underwriters: Jefferies and Morgan Stanley are joint-lead managers. Acting as co-managers are Banc of America Securities, Dahlman Rose & Co., and DnB NOR Markets.

Venture Capitalists: Fleet Acquisition OCM Principal Opportunities Fund III, OCM Principal Opportunities Fund IIIA (the Oaktree funds).

52-Week Percentage Change:

Dow Jones U.S. Marine Transportation Index: up 45 percent

Nasdaq Composite Index: up 12.6 percent

The carryover is Accentia Biopharmaceuticals, a Tampa, Florida-based biopharmaceutical company focusing on developing late-stage clinical products in the therapeutic areas of respiratory disease and oncology. It expects to price 6.25 million shares at $8 to $10 each to raise $56.3 million during the week of July 18.

Perspective

If all the deals on July 2005’s forward IPO calendar get priced, including the deals that have already come to market, then July’s traffic would total 16 deals raising $2.4 billion.